Financial Engineering

This course deals with the finance issues related to the implementation of civil engineering projects. It introduces economic engineering concepts and finance-related topics such as project financing and financial accounting. This course requires the student to study in detail:

1. Finance and the firm, covering topics such as sources of finance, cost of finance, financial structures, working capital management and financial accounting

2. Capital Budgeting Decisions and Risk, covering topics such as Capital Budgeting, Political and Social factors, Portfolio Management and Risk Considerations

3. Project finance, covering topics such as international capital markets, stakeholder/actors viewpoints and cash flow modelling of projects including characteristics of typical projects like oil wells, open mining, infrastructure and office buildings

4. Future trend topics for finance, especially implications of sustainability and circularity

Summary of topics:

• Short overview of the theory of the firm

• Sources of finance, cost of finance, capital markets

• Cash flow models, decision rules like payback period, C/B ratio, NPV

• Financial accounting

• Financing (international) projects, project finance

• Political and social factors

• Portfolio management

• Financial risk management

• Influence of future trends on sustainability and circularity on finance