EFB106 Cost-Benefit Analysis for Project Appraisal
To view more information for this unit, select Unit Outline from the list below. Please note the teaching period for which the Unit Outline is relevant.
| Unit code: | EFB106 |
|---|---|
| Credit points: | 12 |
| Timetable | Details in HiQ, if available |
| Availabilities |
|
Unit Outline: Semester 2 2026, Gardens Point, Internal
| Unit code: | EFB106 |
|---|---|
| Credit points: | 12 |
| Coordinator: | Viet Ngu Hoang | vincent.hoang@qut.edu.au |
Overview
Cost Benefit Analysis (CBA) is a key technique used to appraise the relative desirability of competing alternative uses of limited resources. CBA supports decision making with respect to investment alternatives across a range of industries in the public and private sector. CBA has been used intensively in investment projects, socio-economic programmes and policies. The unit provides students with foundational knowledge and basic skills of CBA. Also, learning activities are designed to allow students to take multiple perspectives and sustainability principles in analyzing costs and benefits.
Learning Outcomes
On successful completion of this unit you will be able to:
- Apply knowledge of the key principles of Cost Benefit Analysis as a tool for project and policy appraisal.
- Compare a Cost Benefit Analysis approach to standard financial analysis with reference to real-world, socio-economic decisions and actions across a range of industries with the focus on using multiple perspectives in the analysis.
- Analyse the practical value of Cost Benefit Analysis as a tool for project appraisal, drawing on contemporary literature and case studies.
- Analyse and evaluate industry Cost Benefit Analysis reports to inform decision making with the focus on analysis of impacts on welfare and sustainability.
Content
The topics discussed in this unit cover three main parts: (1) Financial appraisal tools and techniques (2) Cost Benefit Analysis; (3) Social CBA. After an introduction lecture (week 1), Part 1 introduces students to techniques and tools such as discounting, net present value, internal rate of return, depreciation, inflation, etc. in the context of financial appraisal projects.
Part 2 introduces the basic microeconomic foundations of CBA and various methods to identify, quantify and value benefits and costs. Key concepts such as willingness to pay, consumer surplus, producer surplus, opportunity costs and market and non-market valuation techniques will be introduced and applied.
Part 3 exposes students to Social CBA. Topics discussed will be externalities, equity weights and social discounting.
These topics will be discussed in the context of real-world applications of CBA. These applications equip students with the knowledge and skills in using multiple perspectives to analyze the welfare impact and sustainability of industries and communities. Also, students will work on the actual application of a simple CBA project using an Excel spreadsheet (with a given template).
QUT Business Capabilities (Undergraduate)
The content and assessment in this unit are aligned to a selection of the following set of QUT Business Capabilities, also known as Assurance of Learning Goals (AoLs). Developing these capabilities will assist you to meet the desired graduate outcomes set at QUT and equip you with the knowledge and skills to succeed in your chosen career.
Knowledge and Technological Skills (KS)
1.1 Demonstrate and apply integrated discipline (including technical) knowledge across the broad field of business with depth in one or more core business disciplines
1.2 Apply technical and technological skills appropriate and effective for real world business purposes and contexts.
Higher Order Thinking (HO)
2.1 Investigate real world business issues and situations through the effective analysis, evaluation and synthesis of theory and practice
2.2 Exercise independent judgement and initiative in adapting and applying knowledge and skills for effective planning, problem solving and decision making in diverse contexts.
Professional Communication (PC)
3.1 Use information literacy skills, and communicate effectively and professionally in written forms and using media appropriate for diverse purposes and contexts
3.2 Use information literacy skills, and communicate effectively and professionally in oral forms, appropriate for diverse purposes and contexts.
Teamwork and Self (TS)
4.1 Exercise self-reflection, responsibility and accountability in relation to own learning and professional practice.
4.2 Apply teamwork knowledge and skills for effective collaboration across diverse purposes and contexts
Social, Ethical and Global Understanding (SE)
5.1 Demonstrate and apply knowledge of ethical and legal principles and practices in analysing and responding to business issues
5.2 Demonstrate and apply knowledge of socially responsible behaviour in analysing and addressing business issues in national and international business contexts.
Learning Approaches
The unit will be delivered in weekly three-hour lecture plus tutorial-workshop blocks. Tutorial-workshop sessions will also involve some Excel-based activities.
Students will learn to apply logical and critical thinking to the use of Cost Benefit Analysis as a tool for project appraisal, with reference to a range of industries and issues, including ethical and social responsibility considerations.
In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The unit coordinator will provide students with further details regarding CRA during the course of the semester.
Students should refer to the unit Canvas site for the latest information.
Feedback on Learning and Assessment
Students will receive feedback in various forms throughout the semester, which may include:
- Informal: worked examples, such as verbal feedback in class, personal consultation.
- Formal: in writing, such as checklists (e.g. criteria sheets), written commentary.
- Direct: to individual students, either in written form or in consultation.
- Indirect: to whole class
Assessment
Overview
Students may be required to attend campus or an assessment centre for the purposes of assessment, regardless of the attendance mode for the unit.
Unit Grading Scheme
7- point scale
Assessment Tasks
Assessment: Simulated Case Study
Students will be required to conduct a simple cost and benefit analysis and a sensitivity analysis on the various values of key parameters/variables used in the CBA. Students need to use Excel and provide discussions on sensitivity of CBA results with respective to key parameters/variables.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Formative or Summative: Formative and Summative
Business Capabilities (AoL goals): KS (1.1, 1.2), HO (2.1)
Assessment: Literature Review
Students will be required to conduct literature review on a variety of issues related to the use of Cost Benefit Analysis as a tool for Project Appraisal with reference to real world decisions and actions across a range of industries.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Formative or Summative: Formative and Summative
Business Capabilities (AoL goals): KS (1.1), HO (2.1), PC (3.1)
Assessment: Report
This assessment requires students to provide critical qualitative assessment of one actual CBA analysis/report.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Formative or Summative: Formative and Summative
Business Capabilities (AoL goals): KS (1.1), HO (2.1, 2.2) PC (3.1), SE (5.2)
Academic Integrity
Academic integrity is a commitment to undertaking academic work and assessment in a manner that is ethical, fair, honest, respectful and accountable.
The Academic Integrity Policy sets out the range of conduct that can be a failure to maintain the standards of academic integrity. This includes, cheating in exams, plagiarism, self-plagiarism, collusion and contract cheating. It also includes providing fraudulent or altered documentation in support of an academic concession application, for example an assignment extension or a deferred exam.
You are encouraged to make use of QUT’s learning support services, resources and tools to assure the academic integrity of your assessment. This includes the use of text matching software that may be available to assist with self-assessing your academic integrity as part of the assessment submission process.
Breaching QUT’s Academic Integrity Policy or engaging in conduct that may defeat or compromise the purpose of assessment can lead to a finding of student misconduct (Code of Conduct – Student) and result in the imposition of penalties under the Management of Student Misconduct Policy, ranging from a grade reduction to exclusion from QUT.
Resources
Other resources to be provided on Canvas.
Resource Materials
Prescribed text(s)
Donald G. Newnan, Jerome P. Lavelle and Ted G. Eschenbach: Engineering Economic Analysis; Oxford University Press, E-book, Edition 2012 (available in QUT online database)
Recommended text(s)
Boardman; Greenberg; Vining; Weimer 2014. Cost-Benefit Analysis. Concepts and Practice. Pearson New International Edition.
JENKINS, GLENN P; CHUN-YAN KUO and ARNOLD C HARBERGER. 2011. Cost-benefit analysis of investment decisions. Available at http://ayousefi.iut.ac.ir/sites/ayousefi.iut.ac.ir/files/u99/cost-benefit_analysis_for_investment_decisions.pdf (If this link does not work, please google the title and authors)
Risk Assessment Statement
There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit.
You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to view the Emergency video http://www.fmd.qut.edu.au/security/dvd/Evacuation_282k.wmv.
Standards/Competencies
This unit is designed to support your development of the following standards\competencies.
Engineers Australia Stage 1 Competency Standard for Professional Engineer
1: Knowledge and Skill Base
Relates to: Literature Review
3: Professional and Personal Attributes
Relates to: Simulated Case Study, Literature Review
Relates to: Report
Relates to: Simulated Case Study
Unit Outline: Semester 2 2026, Online
| Unit code: | EFB106 |
|---|---|
| Credit points: | 12 |
Overview
Cost Benefit Analysis (CBA) is a key technique used to appraise the relative desirability of competing alternative uses of limited resources. CBA supports decision making with respect to investment alternatives across a range of industries in the public and private sector. CBA has been used intensively in investment projects, socio-economic programmes and policies. The unit provides students with foundational knowledge and basic skills of CBA. Also, learning activities are designed to allow students to take multiple perspectives and sustainability principles in analyzing costs and benefits.
Learning Outcomes
On successful completion of this unit you will be able to:
- Apply knowledge of the key principles of Cost Benefit Analysis as a tool for project and policy appraisal.
- Compare a Cost Benefit Analysis approach to standard financial analysis with reference to real-world, socio-economic decisions and actions across a range of industries with the focus on using multiple perspectives in the analysis.
- Analyse the practical value of Cost Benefit Analysis as a tool for project appraisal, drawing on contemporary literature and case studies.
- Analyse and evaluate industry Cost Benefit Analysis reports to inform decision making with the focus on analysis of impacts on welfare and sustainability.
Content
The topics discussed in this unit cover three main parts: (1) Financial appraisal tools and techniques (2) Cost Benefit Analysis; (3) Social CBA. After an introduction lecture (week 1), Part 1 introduces students to techniques and tools such as discounting, net present value, internal rate of return, depreciation, inflation, etc. in the context of financial appraisal projects.
Part 2 introduces the basic microeconomic foundations of CBA and various methods to identify, quantify and value benefits and costs. Key concepts such as willingness to pay, consumer surplus, producer surplus, opportunity costs and market and non-market valuation techniques will be introduced and applied.
Part 3 exposes students to Social CBA. Topics discussed will be externalities, equity weights and social discounting.
These topics will be discussed in the context of real-world applications of CBA. These applications equip students with the knowledge and skills in using multiple perspectives to analyze the welfare impact and sustainability of industries and communities. Also, students will work on the actual application of a simple CBA project using an Excel spreadsheet (with a given template).
QUT Business Capabilities (Undergraduate)
The content and assessment in this unit are aligned to a selection of the following set of QUT Business Capabilities, also known as Assurance of Learning Goals (AoLs). Developing these capabilities will assist you to meet the desired graduate outcomes set at QUT and equip you with the knowledge and skills to succeed in your chosen career.
Knowledge and Technological Skills (KS)
1.1 Demonstrate and apply integrated discipline (including technical) knowledge across the broad field of business with depth in one or more core business disciplines
1.2 Apply technical and technological skills appropriate and effective for real world business purposes and contexts.
Higher Order Thinking (HO)
2.1 Investigate real world business issues and situations through the effective analysis, evaluation and synthesis of theory and practice
2.2 Exercise independent judgement and initiative in adapting and applying knowledge and skills for effective planning, problem solving and decision making in diverse contexts.
Professional Communication (PC)
3.1 Use information literacy skills, and communicate effectively and professionally in written forms and using media appropriate for diverse purposes and contexts
3.2 Use information literacy skills, and communicate effectively and professionally in oral forms, appropriate for diverse purposes and contexts.
Teamwork and Self (TS)
4.1 Exercise self-reflection, responsibility and accountability in relation to own learning and professional practice.
4.2 Apply teamwork knowledge and skills for effective collaboration across diverse purposes and contexts
Social, Ethical and Global Understanding (SE)
5.1 Demonstrate and apply knowledge of ethical and legal principles and practices in analysing and responding to business issues
5.2 Demonstrate and apply knowledge of socially responsible behaviour in analysing and addressing business issues in national and international business contexts.
Learning Approaches
The unit will be delivered in weekly three-hour lecture plus tutorial-workshop blocks. Tutorial-workshop sessions will also involve some Excel-based activities.
Students will learn to apply logical and critical thinking to the use of Cost Benefit Analysis as a tool for project appraisal, with reference to a range of industries and issues, including ethical and social responsibility considerations.
In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The unit coordinator will provide students with further details regarding CRA during the course of the semester.
Students should refer to the unit Canvas site for the latest information.
Feedback on Learning and Assessment
Students will receive feedback in various forms throughout the semester, which may include:
- Informal: worked examples, such as verbal feedback in class, personal consultation.
- Formal: in writing, such as checklists (e.g. criteria sheets), written commentary.
- Direct: to individual students, either in written form or in consultation.
- Indirect: to whole class
Assessment
Overview
Students may be required to attend campus or an assessment centre for the purposes of assessment, regardless of the attendance mode for the unit.
Unit Grading Scheme
7- point scale
Assessment Tasks
Assessment: Simulated Case Study
Students will be required to conduct a simple cost and benefit analysis and a sensitivity analysis on the various values of key parameters/variables used in the CBA. Students need to use Excel and provide discussions on sensitivity of CBA results with respective to key parameters/variables.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Formative or Summative: Formative and Summative
Business Capabilities (AoL goals): KS (1.1, 1.2), HO (2.1)
Assessment: Literature Review
Students will be required to conduct literature review on a variety of issues related to the use of Cost Benefit Analysis as a tool for Project Appraisal with reference to real world decisions and actions across a range of industries.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Formative or Summative: Formative and Summative
Business Capabilities (AoL goals): KS (1.1), HO (2.1), PC (3.1)
Assessment: Report
This assessment requires students to provide critical qualitative assessment of one actual CBA analysis/report.
This assignment is eligible for the 48-hour late submission period and assignment extensions.
Formative or Summative: Formative and Summative
Business Capabilities (AoL goals): KS (1.1), HO (2.1, 2.2) PC (3.1), SE (5.2)
Academic Integrity
Academic integrity is a commitment to undertaking academic work and assessment in a manner that is ethical, fair, honest, respectful and accountable.
The Academic Integrity Policy sets out the range of conduct that can be a failure to maintain the standards of academic integrity. This includes, cheating in exams, plagiarism, self-plagiarism, collusion and contract cheating. It also includes providing fraudulent or altered documentation in support of an academic concession application, for example an assignment extension or a deferred exam.
You are encouraged to make use of QUT’s learning support services, resources and tools to assure the academic integrity of your assessment. This includes the use of text matching software that may be available to assist with self-assessing your academic integrity as part of the assessment submission process.
Breaching QUT’s Academic Integrity Policy or engaging in conduct that may defeat or compromise the purpose of assessment can lead to a finding of student misconduct (Code of Conduct – Student) and result in the imposition of penalties under the Management of Student Misconduct Policy, ranging from a grade reduction to exclusion from QUT.
Resources
Other resources to be provided on Canvas.
Resource Materials
Prescribed text(s)
Donald G. Newnan, Jerome P. Lavelle and Ted G. Eschenbach: Engineering Economic Analysis; Oxford University Press, E-book, Edition 2012 (available in QUT online database)
Recommended text(s)
Boardman; Greenberg; Vining; Weimer 2014. Cost-Benefit Analysis. Concepts and Practice. Pearson New International Edition.
JENKINS, GLENN P; CHUN-YAN KUO and ARNOLD C HARBERGER. 2011. Cost-benefit analysis of investment decisions. Available at http://ayousefi.iut.ac.ir/sites/ayousefi.iut.ac.ir/files/u99/cost-benefit_analysis_for_investment_decisions.pdf (If this link does not work, please google the title and authors)
Risk Assessment Statement
There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit.
You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to view the Emergency video http://www.fmd.qut.edu.au/security/dvd/Evacuation_282k.wmv.
Standards/Competencies
This unit is designed to support your development of the following standards\competencies.
Engineers Australia Stage 1 Competency Standard for Professional Engineer
1: Knowledge and Skill Base
Relates to: Literature Review
3: Professional and Personal Attributes
Relates to: Simulated Case Study, Literature Review
Relates to: Report
Relates to: Simulated Case Study