Learning Design Blueprint: Project Evaluation

Description of Project Evaluation

Project evaluation is the process of assessing the economic viability and comparative value of proposed projects using mathematical tools to make informed decisions. The core objective is to provide an analytical method for deciding where your limited budget should go in order to maximize the benefit [1]. Typically this involves estimating cashflows over a projects lifetime and applying analysis techniques such as Net Present Value (NPV), Discounted Cashflow (DCF), Internal Rate of Return (IRR) and deprecation [2]. In order to carry out these calculations software such as Excel is often used to structure, and preform calculations and visualize the results[3]. Together economic fundamentals combined with spreadsheets form the backbone of project evaluation.

Misconceptions About Project Evaluation

A common misconception in project evaluation is that the project with the highest overall return is always the best choice. It is tempting to pick the project with largest IRR or total cash, but this method misses key points like project scale and timing. A smaller project with an extremely high IRR might actually create less value than a large project with a low IRR. That is why analytical methods are used to account for these differences.

Another misconception is that excel takes the thinking out of your hands and makes the decision for you. Excel doesn’t understand economics; it only calculates based on the numbers you provide. While built-in financial functions speed up computations, they remain mathematical tools. The critical thinking must come from the user. As the saying goes, “Garbage in, garbage out” meaning any software’s output is only as reliable as its inputs. Therefore, users must understand the assumptions behind their inputs and intelligently interpret the results.

Rational for Development

This resource is developed to bridge the gap between theoretical finance concepts and practical use. Misunderstanding core principles or misusing analytical tools can lead to costly financial decisions in both professional and personal contexts. this resource aims to build not just competency, but judgment. It empowers learners to move from simply assuming values of decision to making informed, justified choices.

Target Audience

This resource is designed for grade 12 students in an introductory finance, business, or life skills course. Learners possess basic math skills but have no prior experience with formal financial analysis or spreadsheet modeling. While digitally literate, they are new to applying tools like Excel for decision-making. The content is structured to connect core economic principles to relatable, practical scenarios.

Design Platform

The resource will be hosted on a WordPress site. The site can be structured into clear modules, house embedded videos, host downloadable files, and include interactive quizzes. It will be structured into three main categories per content.

• Core Content:
  • A concise lesson using available resources explaining key concepts.
• Tutorial:
  • A brief solved example of the aforementioned concept if necessary.
• Assignment/Discussion
  • A discussion of the key topics outlined above will be submitted to show competency and understanding of a topic.
  • A downloadable worksheet will be provided for students to complete and submit for grading.

Alignment

Core Concepts

• The time value of money and depreciation: Money available today is worth more than the same amount in the future due to its potential earning capacity. Furthermore, assets lose predictable value over time, and this cost must be accounted for in project evaluation.
• Practical Financial Modeling: Sound economic decisions require translating these principles into structured, reusable analysis using spreadsheets like Excel.

Sub Topics

Core Economic Concepts

• Essential Questions:
  1. Why is a dollar today worth more than a dollar tomorrow?
  2. How do we calculate what future cash flows are worth in today’s terms?
  3. What does Net Present Value (NPV) tell us, and why is it a powerful decision rule?
• Learning Objectives: Students will be able to:
  • Explain the concept of the time value of money (TVM) and discounting.
  • Calculate the Present Value (PV) of a future sum and the NPV of a project stream.
  • Define NPV and interpret its result for a project decision.
• Assessment Plan:
  • Concept Quiz: An H5P quiz testing understanding of TVM, DCF, and NPV concepts and uses.
  • Discussion Assignment: A short-answer assignment where students discuss scenarios and uses of these core concepts.
• Resources Needed:
  • Video: “Introduction to the Time Value of Money” [4]
  • Article/Video: “Net Present Value Explained” [5]
  • Article/Video: “Payback Period: Definition, Formula, and Calculation” [6]
• Technology Tools:
  • WordPress & H5P (for interactive quiz)
  • WordPress Discussion board (for submission)

Economic Depreciation

• Essential Questions:
  1. What is depreciation and why is it an important cost in business?
  2. How is the loss in an asset’s value calculated for accounting purposes?
  3. Do all assets lose value in the same way?
• Learning Objectives: Students will be able to:
  • Define depreciation, book value, and salvage value.
  • Perform a straight-line depreciation calculation.
  • Explain how different assets have different depreciation patterns.
• Assessment Plan:
  • Depreciation Brainstorm: On a discussion board, students will give in their own words their understanding of depreciation, and create a brainstorm/web chart of things they think depreciate in value over time (min. 5 items), with a short explanation of why.
  • Depreciation Worksheet: A PDF worksheet requiring definitions and straight-line depreciation calculations.
  • Methods Analysis: Students will read about different depreciation methods and explain why or why not depreciation is uniform. For given items (e.g., a rare trading card, a new iPhone), they will explain how the value will change over time in a short-answer assignment submitted as a PDF.
• Resources Needed:
  • Video: “Economic Depreciation Explained in 3 Minutes 2025!,” [7]
  • Article: “Understanding Economic Depreciation: A Comprehensive Guide,” [8]
  • Article:  “Difference Between Book Value and Salvage Value in Accounting,” [9]
  • Video: “Introduction to Depreciation and Straight Line Depreciation – Engineering Economics Lightboard,” [10]
  • Article: “Straight Line Depreciation,” [11]
  • Resource: “Introduction to Depreciation,” [12]
  • Article: “Depreciation Methods,” [13]
• Technology Tools:
  • WordPress Discussion Forum
  • WordPress Assignment Tool

Excel Fundamentals

• Essential Questions:
  1. How do we structure raw data in Excel to prepare it for analysis?
  2. How do formulas and functions automate calculations and make models dynamic?
• Learning Objectives: Students will be able to:
  • Navigate the Excel interface and input data into a structured table.
  • Apply basic formatting to improve readability.
  • Use the built in functions and create simple formulas to perform calculations.
• Assessment Plan:
  • Data Entry Practical: Students are given a raw text list of project costs and must organize this data into a structured Excel sheet with correct Row/Column headers.
  • Basic Calculation Check: Students will use the sum function to calculate a “Total Project Cost” and change one cost variable to show the total updates automatically.
  • Basic Project Valuation formulae: Students will be provided with a simple project scenario including an initial investment and a series of forecasted cash flows. They must write and apply the core financial formulas in Excel to calculate PV of a future lump sum, NPV of the cash flow series, IRR of the project.
• Resources Needed:
  • Article: “What is Excel?” [14]
  • Article: “Creating and opening workbooks,” [15]
  • Article: “Overview of formulas in Excel,” [16]
  • Downloadable: “Project_Costs_Raw_Data”
• Technology Tools:
  • Microsoft Excel
  • WordPress (to host guides and collect screenshot submissions)

Applied Financial Analysis in Excel

• Essential Questions:
  1. How do we bring economic theory and data together in an Excel model?
  2. How can charts turn financial data into understandable insights?
  3. How do we interpret model outputs to make a recommendation?
• Learning Objectives: Students will be able to:
  • Build an integrated Excel model that calculates DCF and NPV from a table of cash flows.
  • Create a line chart from financial data.
  • Interpret a model’s outputs to support a simple project decision.
• Assessment Plan:
  • Model Building: Students will apply previous knowledge to create a DCF and NPV data table in Excel using provided data and guided instructions.
  • Chart Creation: Students will create a line chart from their DFC and NPV tables and submit a screenshot of the data tables and line charts.
  • Chart Interpretation: Students will read an article and answer specific interpretation questions about their DCF and NPV charts (e.g., “What do the x and y axes represent?”, “Why does the NPV line generally move upward?”).
• Resources Needed:
  • Video: “How to Build a DCF Model in Excel – Step-by-Step Tutorial,”[17]
  • Video: “NPV and IRR in Excel,” [18]
  • Video: “How to Make a Line Graph in Excel,” [19]
  • Article: “A Guide to Interpreting Line Graphs,” [20]
  • Downloadable: “Project_Analysis_Template.xlsx”
• Technology Tools:
  • Microsoft Excel
  • WordPress Assignment Tool (for file submission)

Platform Component	Implementation Strategy	Accessibility & Engagement
Hosting Platform	WordPress	Mobile-responsive design allows learners to access content on multiple devices.
Module Structure	Categorized Lessons	Each subtopic features a “Lesson” (Theory), “Tutorial” (Application), and “Assignment” (Competency).
Interactivity	H5P Integration	Embedded H5P quizzes provide immediate feedback and testing principles.
Support Materials	Downloadable Assets	CSV/Excel templates (e.g., Project_Costs_Raw_Data) ensure learners focus on analysis rather than troubleshooting data entry.
Feedback Loop	Discussion Forums	WordPress forums facilitate peer-to-peer learning and instructor moderation for “brainstorming” activities.

Project Planning

The work is structured around weekly deliverables, with each member of our learning pod taking primary responsibility for the instructional design of a specific subtopic.

Group Responsibilities & Contribution

Applied Financial Modeling & Visualization (Julia): Responsible for guiding students in implementing DCF/NPV models in Excel, creating professional line charts from financial data, and interpreting the graphical results to support decision-making.

Economic Evaluation & Analysis (Chase): Responsible for content on economic projection, Discounted Cash Flow (DCF), Present Value (PV), Net Present Value (NPV), and the comparative use of evaluation methods.

Economic Depreciation (Saskia): Responsible for content defining depreciation, differentiating book vs. salvage value, and explaining calculation methods. This connects theory to the realistic cost of owning assets within a project.

Excel Fundamentals (Aiden): Responsible for modules on Excel setup, structured data entry, formatting, and basic formulas/functions. This provides the critical “how-to” skills required to implement the economic concepts.

Synthesis and Final Assembly (Chase): To ensure a unified final product, this role is responsible for compiling the group’s work into a logically structured, coherent, and professionally formatted submission, ready for submisson.

References