DESCRIPTION OF COURSES
AG ECON 660 AGRICULTURAL PROJECT ANALYSIS (2l + 1P) I
In this course the students will be taught about the types of projects and various methods to capture cost and value of project. It also deals with various methods used to assess the feasibility of the projects.
Definition of a project, identification and formulation of project, need for project, ex-post and ex- ante appraisal, basic data requirement, discounted cash flow analysis and measure of probability, choice of discount rate, consideration of alternatives, divergence of private and social profits, government action to bring out equality of social and private profits, social objectives and accounting price.
Allocation of scarce resources; land, labour, capital, foreign exchange; present and future consumption, optimum use of taxes and subsidy.
Public ownership and planning, relationship between plans and projects selection and investment programme; private sector projects, method of evaluation of private projects, social cost-benefit and switching values, uses and abuses of sensitivity analysis.
Accounting prices for traded and non-traded goods, marginal social costs and marginal social benefits, financing of projects, scale and fixing of projects, impact of project outputs on production and consumption elsewhere. Shadow wage rates and accounting rate of interest, uncertainty and investment criteria, external effects related to inputs and outputs of the project, indicators of economic worthiness in project appraisal; period of recovery, capital output ratio, accounting rate of return, benefit cost ratio, internal rate of return, net present value, economic rate of return, comparisons of indicators.
Time value of money. Computation of interest rate using different methods. Case studies on project appraisal and evaluation using both methods of project evaluation; Undiscounted measures and Discounted measures. Social cost benefit analysis. Sensitivity analysis