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CS31A0604 Life-Cycle Costing of Investment Projects, 3 cr 
Code CS31A0604  Validity 01.08.2016 - 31.07.2017
Name Life-Cycle Costing of Investment Projects  Abbreviation Life-Cycle Cost 
Credits3 cr   
TypeBasic studies  
ClassCourse   
  Grading scaleStudy modules 0-5,P/F 
  Eligibility for post-graduate studiesno
    Allowed to study several timesno
Organisation LUT School of Engineering Science 

Teachers
Name
Miia Pirttilä 

Description by Study Guide
Note 

Can't be included into a same degree as CS31A0610 Life-Cycle Costing of Investment Projects.

 
Year 

M.Sc. (Tech.) 1-2

 
Period 

1

 
Teaching Language 

English

 
Teacher(s) in Charge 

Professor, D.Sc. (Tech.) Timo Kärri

Post-doctoral researcher D.Sc. (Tech.) Miia Pirttilä

 
Aims 

The student can prepare and evaluate investment proposals and consider requirements of sustainability during the life-cycle of projects.

 
Contents 

Investment proposal. Life-cycle of investment project, life-cycle costs and profits, capital costs, initial investment and working capital, classification and selection of projects, uncertainty and risks. Evaluation methods introduced: net present value, internal rate of return, return on investment, payback period, benefit-cost ratio and profitability index. Investment process, timing and financing of projects, public-private partnership, life-cycle models of machine replacements, concept of real option, evaluation of projects from the perspective of sustainability.

 
Teaching Methods 

Lectures 2 h, exercises 10 h, group assignments 30 h, individual assignments 10 h and preparation for the exam 28 h. Total 80 h.

 
Examination in Examination schedule (Yes/No) 

No (modified 17.10.2018)

 
Examination in Moodle (Yes/No) 

No

 
Examination in Exam (Yes/No) 

Yes (modified 17.10.2018)

 
Assessment scale and assessment methods 

0-5. Exam 40 %, group assignments 40 %, individual assignments 20 %.

 
Course Materials 

Mott, G.: Investment appraisal. Pitman Publishing, 1997, (196 p.).

Götze, U. et al.: Investment appraisal - Methods and models. Springer. 2008, (341 p.).

Other material presented in the lectures.

 
Prerequisites 

Basic knowledge of cost management.

 
Places for exchange-students? (Yes, number/No) 

Yes, 15-

 
Places for Open University Students?(Yes, number/No) 

No

 
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to sustainability

 


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