## CN4072 - Economics and Finance Management in Construction (Syllabus) 2021-regulation Anna University

CN4072

ECONOMICS AND FINANCE MANAGEMENT IN CONSTRUCTION

LTPC

3003

OBJECTIVE:
• To study the concepts of Construction Economic and Finance such as comparing alternatives proposals, evaluating alternative investments, management of funds, and management of accounting.

UNIT I

BASIC PRINCIPLES

9

Time Value of Money – Cash Flow diagram – Nominal and effective interest- continuous interest . Single Payment Compound Amount Factor (P/F,F/P) – Uniform series of Payments (F/A,A/F,F/P,A/P)– Problem time zero (PTZ)- equation time zero (ETZ). Constant increment to periodic payments – Arithmetic Gradient(G), Geometric Gradient (C).

UNIT II

COMPARING ALTERNATIVES PROPOSALS

9

Comparing alternatives- Present Worth Analysis, Annual Worth Analysis, Future Worth Analysis, Rate of Return Analysis (ROR) and Incremental Rate of Return (IROR)Analysis, Benefit/Cost Analysis, Break Even Analysis.

UNIT III

EVALUATING ALTERNATIVE INVESTMENTS

9

Real Estate - Investment Property, Equipment Replace Analysis, Depreciation – Tax before and after depreciation – GST– Input Tax Credit (ITC) – Assessment and Administration of GST – Inflation.

UNIT IV

FUNDS MANAGEMENT

9

Project Finance – Sources of finance - Long-term and short -term finance, Working Capital Management, Inventory valuation, Mortgage Financing - International financial management- foreign currency management.

UNIT V

FUNDAMENTALS OF MANAGEMENT ACCOUNTING

9

Management accounting, Financial accounting principles- basic concepts, Financial statements – accounting ratios - funds flow statement – cash flow statement.

TOTAL : 45 PERIODS

OUTCOMES: On completion of the course, the student is expected to be able to
CO1 Describe the basic principles of Economic in construction
CO2 Evaluate alternate proposals
CO3 Evaluate alternative investments
CO4 Select best source of finance for a project
CO5 Manage the finance and accounting

REFERENCES:
1. Blank, L.T., and Tarquin,a.J Engineering Economy,4th Edn. Mc-Graw Hill Book Co., 1988
2. Collier C and GlaGola C Engineering Economics & Cost Analysis, 3nd Edn. Addison Wesley Education Publishers.,1998.
3. Patel, B M Project management- strategic Financial Planning, Evaluation and Control, Vikas Publishing House Pvt. Ltd. New Delhi, 2000
4. Shrivastava,U.K., Construction Planning and Management,2nd Edn. Galgotia Publications Pvt. Ltd. New Delhi., 2001.
5. Steiner, H.M. Engineering Economic principles, 2nd Edn. McGraw Hill Book, 1996