GT1

Engineering Tripos Part IIB, 4M23: Electricity and Environment, 2023-24

Timing and Structure

Lent term. 2 hour sessions delivered in person. Assessment: 100% coursework.

Prerequisites

A basic engineering knowledge of electricity (first year undergraduate) and a familiarity with the units and notation associated with energy science and engineering is an advantage, but not essential. Assessment will be structured so as to be accessible to students from a range of backgrounds.

Aims

The aims of the course are to:

provide students with a firm foundation in modern electricity policy with an emphasis on the UK.
introduce students to a wide a variety of mature and emergent electricity generation and demand side technologies.
expose students to the local, regional and global environmental effects of energy use.
introduce the key considerations of energy policy and develop frameworks by which progress against policy goals may be achieved.
discuss issues with electrification of heating and transport.

Objectives

As specific objectives, by the end of the course students should be able to:

critique scenarios for the future UK electricity system out to 2050
evaluate and compare the efficacy of different electricity generation technologies
understand current and future electricity policy options
appreciate how economics and engineering interact in a sustainable electricity system

Content

This module is a postgraduate module of Cambridge Judge Business School. It has its origins as an elective course of the MPhil in Technology Policy and the MPhil in Engineering for Sustainable Development. The module is of the standard size adopted in the Engineering Department and the Judge Business School, i.e. a nominal 16 hours. The course is delivered via one two-hour lecture each week for eight weeks.

We take the Great Britain electricity system as a working example which we will refer to throughout the course.

Overview - Class Introduction (Michael Pollitt)

Lecture 1

History of Electrical Power and Energy Policy
Fundamentals of the UK and USA Electricity System
The nature of the current UK electricity bill and electricity market
UK Energy Policy and Politics
Principles of good energy policy

Environmental Effects of Fossil Fuel Use and what to do about them (Michael Pollitt)

Lecture 2

Local Emissions and Impacts
Putting a Price on Damages?
Economic approaches to externalities
Pricing carbon
Experiences of the EU Emissions Trading System and carbon pricing in Australia

Electricity Demand (Michael Pollitt)

Lecture 3

Economics of Electricity Demand
The economics of smart energy services
Technological aspects of electricity demand
Social aspects of electricity demand
Demand side policy

Fossil fuel generation, storage and future electricity markets (Michael Pollitt)

Lecture 4

Current status of fossil-fuel power generation
Economics of Carbon Capture and Storage
The economics of electricity storage
Business models for the internet of energy
Future electricity market design

Renewables and the Electricity System (Michael Pollitt)

Lecture 5

Renewables context
Potential for renewables in the UK
Place of renewables in electricity system
How to subsidise renewables
Lessons from around the world

Electrification of heating and transport? Electricity in Net Zero (Michael Pollitt)

Lecture 6

Electrification of everything?
Decarbonising heating with electricity
Decarbonising transport with electricity
Sector coupling and modelling Net Zero
Policy recommendations for Net Zero

Electricity Networks for Net Zero (Stephan Goetz)

Lecture 7

Conventional and modern electric power systems
Power electronics – enabling technology in power conversion
Transport electrification
Datacentre power supply

Nuclear Power, Electricity Security and EU Policy (Michael Pollitt)

Lecture 8

Nuclear Power Technology
History and Economics of Nuclear Power
EU and UK energy security
National security of electricity supply
Meeting UK targets by Electricity Market Reform
Good electricity policy?

Coursework

Coursework	Format	Due date & marks
Essay on the 2035 decarbonisation challenge facing the UK electricity system. Learning objectives: To discuss the challenge of decarbonising the UK electricity system by 2035. To cover both the economic and engineering challenges facing the UK electricity system.	Individual Report 2000 words anonymously marked	22 March 2024 [100/100]

Format

Due date

& marks

Essay on the 2035 decarbonisation challenge facing the UK electricity system.

Learning objectives:

To discuss the challenge of decarbonising the UK electricity system by 2035.
To cover both the economic and engineering challenges facing the UK electricity system.

Individual Report

2000 words

anonymously marked

22 March 2024

[100/100]

Booklists

Expected reading:

Glachant, J-M., Joskow, P. and Pollitt, M. (eds.) (2021) Handbook on Electricity Markets. Cheltenham: Edward Elgar. Online on iDiscover.

Ozawa, M., Chaplin, J., Pollitt, M., Reiner, D. and Warde, P. (eds.) (2019) In Search of Good Energy Policy. Cambridge: Cambridge University Press. Online on iDiscover.

Examination Guidelines

Please refer to Form & conduct of the examinations.

UK-SPEC

This syllabus contributes to the following areas of the UK-SPEC standard:

Toggle display of UK-SPEC areas.

Develop transferable skills that will be of value in a wide range of situations. These are exemplified by the Qualifications and Curriculum Authority Higher Level Key Skills and include problem solving, communication, and working with others, as well as the effective use of general IT facilities and information retrieval skills. They also include planning self-learning and improving performance, as the foundation for lifelong learning/CPD.

IA1

Apply appropriate quantitative science and engineering tools to the analysis of problems.

IA2

Demonstrate creative and innovative ability in the synthesis of solutions and in formulating designs.

KU1

Demonstrate knowledge and understanding of essential facts, concepts, theories and principles of their engineering discipline, and its underpinning science and mathematics.

KU2

Have an appreciation of the wider multidisciplinary engineering context and its underlying principles.

S1

The ability to make general evaluations of commercial risks through some understanding of the basis of such risks.

S3

Understanding of the requirement for engineering activities to promote sustainable development.

S4

Awareness of the framework of relevant legal requirements governing engineering activities, including personnel, health, safety, and risk (including environmental risk) issues.

E1

Ability to use fundamental knowledge to investigate new and emerging technologies.

E4

Understanding of and ability to apply a systems approach to engineering problems.

P1

A thorough understanding of current practice and its limitations and some appreciation of likely new developments.

P3

Understanding of contexts in which engineering knowledge can be applied (e.g. operations and management, technology, development, etc).

US1

A comprehensive understanding of the scientific principles of own specialisation and related disciplines.

US3

An understanding of concepts from a range of areas including some outside engineering, and the ability to apply them effectively in engineering projects.

US4

An awareness of developing technologies related to own specialisation.

Last modified: 09/01/2024 10:31

Engineering Tripos Part IIB, 4I1: Strategic Valuation, 2017-18

Module Leader

Dr H Jiang

Lecturer

Dr H Jiang

Lab Leader

Dr H Jiang

Timing and Structure

Christmas vacation - dates below; Assessment: Coursework 100% ind project combining spreadsheet modelling, written analysis and a management-style report - details TBA. You may conduct some Excel modelling with fellow students. Michaelmas/Lent Term break.

Prerequisites

All participants are expected to be familiar with probability and statistics at the level of a final year high school or introductory undergraduate course. See the prerequisites document on the course website for details. Participants are also expected to be familiar with basic Excel spreadsheet modelling (see e.g. http://best-excel-tutorial.com/54-basics for a tutorial). The basic Excel functions and tasks that you must know how to use competently are: MAX, AVERAGE, COUNT, IF, SUMPRODUCT; mathematical formulas based on relative and absolute references; creating simple tables; plotting pie, bar, column and line charts.

Aims

The aims of the course are to:

See below.

Objectives

As specific objectives, by the end of the course students should be able to:

See below.

Content

Module Time: 3 full days (9.00am – 5.00pm) on 4^th, 6^th, and 8^th December 2017.
Reserve 4^th – 11^th December 2017 for TPE25 only.
Reserve 9^th and 10^th December 2017 for conducting part I of the course assessment.
Reserve a compulsory Q&A session for the course assessment at 9am-11am on 11^th December 2017.
It is useful for you to have a Window-based laptop for Excel modelling. If you do not have a laptop, be prepared to stay in Cambridge for a few more days after 11^th December 2017 so that you can conduct Excel modelling in the CJBS Computer Lab.
The level of mathematical theory may be below the expectation of some CUED students.

This module introduces students to two essential and complementary ways of dealing with future uncertainties. On one hand, we have diversification, the notion that you should "not put all your eggs in one basket", is both intuitive and ubiquitous in modern management. This exemplifies passive risk management. On the other, we have the real options paradigm. This emphasises that future value depends both on unfolding uncertainties, which you cannot control, and the flexibility of your future responses. By investing in research and development projects, for example, companies buy the option to launch a product, which they may or may not exercise, depending on the level of success of the R and D effort and on market conditions at the time of launch. However, flexibility also costs money: R and D expenditure, for example in the biotech industry, can be huge. So how much flexibility shall we build into the system? This is the realm of project design for active risk management. System designers and project managers need tools that help them decide if added flexibility is worth the money. This course provides the students with a mindset and a suite of tools to tackle such problems.

The emphasis is on management and design of technological projects. Examples and case studies will illustrate how theory can be adapted to actual conditions.

Please note that the number of places available to Part IIB Engineers is limited. Students who have not taken 3E3 will be given priority. A ballot will be held if the module looks likely to be oversubscribed. The ballot will take place on the first day of lectures, after which the Teaching Office will be in touch with any unsuccessful applicants to ask them to select another module.

Day 1: Foundations

Course aims and objectives
Review of traditional project valuation
System value is a shape, not a number
Monte Carlo Simulation
(Valuing flexibility)

Preparatory reading:

Savage (2003), Ch. 2: ‘The building blocks of uncertainty: random variables’, Ch. 3: ‘The buildings of uncertainty: functions of random variables’.
If you have not seen Net Present Value (NPV) or Discounted Cash Flows before, read Brealey and Meyers, Ch. 2: ‘Present values’

Day 2: Portfolio Thinking

Diversification
Hedging
Trading off risk against return

Preparatory reading:

www.moneychimp.com/articles/risk/riskintro.htm, first five sections (short!) from ‘MPT Introduction’ to ‘Build a Portfolio’.
Optionally, Brealey and Meyers, Ch. 9: ‘Risk’ [For 8^th edition, use Ch. 8]

Day 3: Real Options Analysis

Flexibility: Intuition behind real options
Lattice valuations

Preparatory reading:

Brealey and Meyers, Ch. 10: ‘Project Analysis’, Ch. 20: ‘Understanding Options’ [For the 9^th edition, use Ch. 11, Ch. 21]
de Neufville and Scholtes (2011), Ch. I: ‘High Level Overview’ (pp. 1-39)

Further notes

Required software

The basic modelling tool will be Microsoft Excel. Essential add-ins include Analysis ToolPak and Solver, both of which come with Excel but may require the Excel installation disks, and @Risk, which will be distributed to you.

Coursework

Coursework	Format	Due date & marks
100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%). Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations. Task II is a short presentation and is assessed by a set of criteria: intuition (business implication), prioritising information (structure), clarity and use of visual aids such as charts and graphs, and language.	Individually Assessed Answer Sheet, Presentation Document and Excel Files anonymously marked	The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2018. Marks will be available in three-four weeks after the submission date.

Format

Due date

& marks

100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%).

Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations.

Task II is a short presentation and is assessed by a set of criteria: intuition (business implication), prioritising information (structure), clarity and use of visual aids such as charts and graphs, and language.

Individually Assessed

Answer Sheet, Presentation Document and Excel Files

anonymously marked

The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2018.

Marks will be available in three-four weeks after the submission date.

Booklists

Please see the Booklist for Group I Courses for references for this module.

Module Webpage

To be advised: https://www.vle.cam.ac.uk/course/view.php?id=83341

TPE6 Strategic Valuation

Reference Books

The following are available in multiple copies in the Judge Business School Information Centre:

de Neufville, R. and Scholtes, S. (2011)	Flexibility in Engineering Design. Cambridge, MA: MIT Press	E-book via Dawsonera (Click on ‘institutional login’) Printed book at: TA174.D46 2011
Brealey, R. A, Myers, S. C. and Allen, F. (2011) or Brealey, R. A, Myers, S. C. and Allen, F. (2008)	Principles of Corporate Finance. 10^th ed. Boston, Mass.: Irwin McGraw Hill 9^th ed. N.B. For Brealey and Myers, any edition from 6^th ed. onwards is fine.	Printed books at: HG4026.B73 P7 2011 HG4026.B73 P7 2008
Savage, S. L. (2003)	Decision Making with Insight. Belmont, CA: Brooks/Cole	Printed book at: HF5548.4.S38 2003
Luenberger, D. G. (1998)	Investment Science. Oxford: Oxford University Press	Printed book at: HG4515.2.L83

Examination Guidelines

Please refer to Form & conduct of the examinations.

UK-SPEC

This syllabus contributes to the following areas of the UK-SPEC standard:

Toggle display of UK-SPEC areas.

GT1

IA1

Apply appropriate quantitative science and engineering tools to the analysis of problems.

IA2

Demonstrate creative and innovative ability in the synthesis of solutions and in formulating designs.

KU1

Demonstrate knowledge and understanding of essential facts, concepts, theories and principles of their engineering discipline, and its underpinning science and mathematics.

KU2

Have an appreciation of the wider multidisciplinary engineering context and its underlying principles.

S1

The ability to make general evaluations of commercial risks through some understanding of the basis of such risks.

S2

Extensive knowledge and understanding of management and business practices, and their limitations, and how these may be applied appropriately to strategic and tactical issues.

E1

Ability to use fundamental knowledge to investigate new and emerging technologies.

E3

Ability to apply mathematical and computer based models for solving problems in engineering, and the ability to assess the limitations of particular cases.

P3

Understanding of contexts in which engineering knowledge can be applied (e.g. operations and management, technology, development, etc).

P8

Ability to apply engineering techniques taking account of a range of commercial and industrial constraints.

US1

A comprehensive understanding of the scientific principles of own specialisation and related disciplines.

US3

An understanding of concepts from a range of areas including some outside engineering, and the ability to apply them effectively in engineering projects.

Last modified: 12/09/2017 16:31

Engineering Tripos Part IIB, 4I1: Strategic Valuation, 2023-24

Module Leader

Prof. H Jiang

Lecturer

Prof. H Jiang

Lab Leader

Prof. H Jiang

Timing and Structure

Christmas vacation - dates below; Assessment: Coursework 100% in project combining spreadsheet modelling, written analysis and a management-style report - details TBA. You may conduct some Excel modelling with fellow students. Michaelmas/Lent Term break.

Prerequisites

All participants are expected to be familiar with probability and statistics at the level of a final year high school or introductory undergraduate course. See the prerequisites document on the course website for details. Participants are also expected to be familiar with basic Excel spreadsheet modelling (see e.g., http://best-excel-tutorial.com/54-basics for a tutorial). The basic Excel functions and tasks that you must know how to use competently are: MAX, AVERAGE, COUNT, IF, SUMPRODUCT; mathematical formulas based on relative and absolute references; creating simple tables; and plotting pie, bar, column and line charts.

Aims

The aims of the course are to:

See below.

Objectives

As specific objectives, by the end of the course students should be able to:

See below.

Content

There will be an introduction session of the course on 6th October 2023.

Module Time: 3 full days (9.00am – 5.00pm) on 4^th, 6^th, and 8^th December 2023.
Reserve 4^th – 11^th December 2023 for TPE25 ONLY.
Reserve 9^th and 10^th December 2023 for conducting part I of the course assessment.
Reserve a compulsory Q&A session for the course assessment on 11^th December 2023.
It is necessary for you to have a Window-based or MacOS laptop for Excel modelling. There is a possibility that students use computers in the computer lab. If you do not have a laptop, be prepared to stay in Cambridge for a few more days after 11^th December 2023 so that you can conduct Excel modelling in relation to your course assessment in the CJBS Computer Lab – subject to the availability of the lab.
The level of mathematical theory may be below the expectation of some CUED students.

The emphasis is on management and design of technological projects. Examples and case studies will illustrate how theory can be adapted to actual conditions.

Please note that the number of places available to Part IIB Engineers is limited. A ballot will be held if the module looks likely to be oversubscribed. The ballot will take place on the first day of lectures, after which the Teaching Office will be in touch with any unsuccessful applicants to ask them to select another module.

Day 1: Foundations

Course aims and objectives
Review of traditional project valuation
System value is a shape, not a number
Monte Carlo Simulation
(Valuing flexibility)

Preparatory reading:

de Neufville, R. and Scholtes, S. (2011), Ch 2: "Recognition of Uncertainty".
If you have not seen Net Present Value (NPV) or Discounted Cash Flows before, read Brealey and Meyers, Ch. 2: ‘Present values’.

Day 2: Portfolio Thinking

Diversification
Hedging
Trading off risk against return

Preparatory reading:

www.moneychimp.com/articles/risk/riskintro.htm, first five sections (short!) from ‘MPT Introduction’ to ‘Build a Portfolio’.
Optionally, Brealey and Meyers, Ch. 9: ‘Risk’ [For 8^th edition, use Ch. 8]

Day 3: Real Options Analysis

Flexibility: Intuition behind real options
Lattice valuations

Preparatory reading:

Brealey and Meyers, Ch. 10: ‘Project Analysis’, Ch. 20: ‘Understanding Options’ [For the 9^th edition, use Ch. 11, Ch. 21]
de Neufville and Scholtes (2011), Ch. I: ‘High Level Overview’ (pp. 1-39)

Further notes

Required software

Coursework

Coursework	Format	Due date & marks
100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%). Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations. Task II is a short presentation and is assessed by a set of criteria: intuition (business implication), prioritising information (structure), clarity and use of visual aids such as charts and graphs, and language.	Individually Assessed Answer Sheet, Presentation Document and Excel Files Anonymously marked	The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2024. Marks will be available in three-four weeks after the submission date.

Format

Due date

& marks

100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%).

Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations.

Individually Assessed

Answer Sheet, Presentation Document and Excel Files

Anonymously marked

The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2024.

Marks will be available in three-four weeks after the submission date.

Booklists

Please refer to the Booklist for Part IIB Courses for references to this module, this can be found on the associated Moodle course.

Module Webpage

To be advised: https://www.vle.cam.ac.uk

TPE25 Strategic Valuation

Reference Books

The following are available in multiple copies in the Judge Business School Information Centre:

de Neufville, R. and Scholtes, S. (2011)	Flexibility in Engineering Design. Cambridge, MA: MIT Press	E-book: https://ebookcentral.proquest.com/lib/CAM/detail.action?pq-origsite=prim... Printed book at: TA174.D46 2011
Brealey, R. A, Myers, S. C. and Allen, F. (2019) or Brealey, R. A, Myers, S. C. and Allen, F. (2008)	Principles of Corporate Finance. 13^th ed. Boston, Mass.: Irwin McGraw Hill 9^th ed. N.B. For Brealey and Myers, any edition from 6^th ed. onwards is fine.	Printed books at: HG4026.B73 P7 2011 E-book: https://www.vlebooks.com/Vleweb/Product/Index/1993343?page=0 HG4026.B73 P7 2008
Savage, S. L. (2003)	Decision Making with Insight. Belmont, CA: Brooks/Cole	Printed book at: HF5548.4.S38 2003
Luenberger, D. G. (1998)	Investment Science. Oxford: Oxford University Press	Printed book at: HG4515.2.L83

Examination Guidelines

Please refer to Form & conduct of the examinations.

UK-SPEC

This syllabus contributes to the following areas of the UK-SPEC standard:

Toggle display of UK-SPEC areas.

GT1

IA1

Apply appropriate quantitative science and engineering tools to the analysis of problems.

IA2

Demonstrate creative and innovative ability in the synthesis of solutions and in formulating designs.

KU1

Demonstrate knowledge and understanding of essential facts, concepts, theories and principles of their engineering discipline, and its underpinning science and mathematics.

KU2

Have an appreciation of the wider multidisciplinary engineering context and its underlying principles.

S1

The ability to make general evaluations of commercial risks through some understanding of the basis of such risks.

S2

Extensive knowledge and understanding of management and business practices, and their limitations, and how these may be applied appropriately to strategic and tactical issues.

E1

Ability to use fundamental knowledge to investigate new and emerging technologies.

E3

Ability to apply mathematical and computer based models for solving problems in engineering, and the ability to assess the limitations of particular cases.

P3

Understanding of contexts in which engineering knowledge can be applied (e.g. operations and management, technology, development, etc).

P8

Ability to apply engineering techniques taking account of a range of commercial and industrial constraints.

US1

A comprehensive understanding of the scientific principles of own specialisation and related disciplines.

US3

An understanding of concepts from a range of areas including some outside engineering, and the ability to apply them effectively in engineering projects.

Last modified: 14/08/2023 11:37

Engineering Tripos Part IIB, 4I1: Strategic Valuation, 2018-19

Module Leader

Dr H Jiang

Lecturer

Dr H Jiang

Lab Leader

Dr H Jiang

Timing and Structure

Prerequisites

Aims

The aims of the course are to:

See below.

Objectives

As specific objectives, by the end of the course students should be able to:

See below.

Content

Module Time: 3 full days (9.00am – 5.00pm) on 3^rd, 5^th, and 7^th December 2018.
Reserve 3^rd – 10^th December 2018 for TPE25 only.
Reserve 8^th and 10^th December 2018 for conducting part I of the course assessment.
Reserve a compulsory Q&A session for the course assessment at 9am-11am on 10^th December 2018.
It is useful for you to have a Window-based laptop for Excel modelling. If you do not have a laptop, be prepared to stay in Cambridge for a few more days after 10^th December 2018 so that you can conduct Excel modelling in the CJBS Computer Lab.
The level of mathematical theory may be below the expectation of some CUED students.

The emphasis is on management and design of technological projects. Examples and case studies will illustrate how theory can be adapted to actual conditions.

Day 1: Foundations

Course aims and objectives
Review of traditional project valuation
System value is a shape, not a number
Monte Carlo Simulation
(Valuing flexibility)

Preparatory reading:

Savage (2003), Ch. 2: ‘The building blocks of uncertainty: random variables’, Ch. 3: ‘The buildings of uncertainty: functions of random variables’.
If you have not seen Net Present Value (NPV) or Discounted Cash Flows before, read Brealey and Meyers, Ch. 2: ‘Present values’

Day 2: Portfolio Thinking

Diversification
Hedging
Trading off risk against return

Preparatory reading:

www.moneychimp.com/articles/risk/riskintro.htm, first five sections (short!) from ‘MPT Introduction’ to ‘Build a Portfolio’.
Optionally, Brealey and Meyers, Ch. 9: ‘Risk’ [For 8^th edition, use Ch. 8]

Day 3: Real Options Analysis

Flexibility: Intuition behind real options
Lattice valuations

Preparatory reading:

Brealey and Meyers, Ch. 10: ‘Project Analysis’, Ch. 20: ‘Understanding Options’ [For the 9^th edition, use Ch. 11, Ch. 21]
de Neufville and Scholtes (2011), Ch. I: ‘High Level Overview’ (pp. 1-39)

Further notes

Required software

Coursework

Coursework	Format	Due date & marks
100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%). Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations. Task II is a short presentation and is assessed by a set of criteria: intuition (business implication), prioritising information (structure), clarity and use of visual aids such as charts and graphs, and language.	Individually Assessed Answer Sheet, Presentation Document and Excel Files anonymously marked	The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2019. Marks will be available in three-four weeks after the submission date.

Format

Due date

& marks

100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%).

Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations.

Individually Assessed

Answer Sheet, Presentation Document and Excel Files

anonymously marked

The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2019.

Marks will be available in three-four weeks after the submission date.

Booklists

Please see the Booklist for Group I Courses for references for this module.

Module Webpage

To be advised: https://www.vle.cam.ac.uk/course/view.php?id=83341

TPE6 Strategic Valuation

Reference Books

The following are available in multiple copies in the Judge Business School Information Centre:

de Neufville, R. and Scholtes, S. (2011)	Flexibility in Engineering Design. Cambridge, MA: MIT Press	E-book via Dawsonera (Click on ‘institutional login’) Printed book at: TA174.D46 2011
Brealey, R. A, Myers, S. C. and Allen, F. (2011) or Brealey, R. A, Myers, S. C. and Allen, F. (2008)	Principles of Corporate Finance. 10^th ed. Boston, Mass.: Irwin McGraw Hill 9^th ed. N.B. For Brealey and Myers, any edition from 6^th ed. onwards is fine.	Printed books at: HG4026.B73 P7 2011 HG4026.B73 P7 2008
Savage, S. L. (2003)	Decision Making with Insight. Belmont, CA: Brooks/Cole	Printed book at: HF5548.4.S38 2003
Luenberger, D. G. (1998)	Investment Science. Oxford: Oxford University Press	Printed book at: HG4515.2.L83

Examination Guidelines

Please refer to Form & conduct of the examinations.

UK-SPEC

This syllabus contributes to the following areas of the UK-SPEC standard:

Toggle display of UK-SPEC areas.

GT1

IA1

Apply appropriate quantitative science and engineering tools to the analysis of problems.

IA2

Demonstrate creative and innovative ability in the synthesis of solutions and in formulating designs.

KU1

Demonstrate knowledge and understanding of essential facts, concepts, theories and principles of their engineering discipline, and its underpinning science and mathematics.

KU2

Have an appreciation of the wider multidisciplinary engineering context and its underlying principles.

S1

The ability to make general evaluations of commercial risks through some understanding of the basis of such risks.

S2

Extensive knowledge and understanding of management and business practices, and their limitations, and how these may be applied appropriately to strategic and tactical issues.

E1

Ability to use fundamental knowledge to investigate new and emerging technologies.

E3

Ability to apply mathematical and computer based models for solving problems in engineering, and the ability to assess the limitations of particular cases.

P3

Understanding of contexts in which engineering knowledge can be applied (e.g. operations and management, technology, development, etc).

P8

Ability to apply engineering techniques taking account of a range of commercial and industrial constraints.

US1

A comprehensive understanding of the scientific principles of own specialisation and related disciplines.

US3

An understanding of concepts from a range of areas including some outside engineering, and the ability to apply them effectively in engineering projects.

Last modified: 31/05/2018 19:32

Engineering Tripos Part IIB, 4I1: Strategic Valuation, 2020-21

Module Leader

Dr H Jiang

Lecturer

Dr H Jiang

Lab Leader

Dr H Jiang

Timing and Structure

Prerequisites

Aims

The aims of the course are to:

See below.

Objectives

As specific objectives, by the end of the course students should be able to:

See below.

Content

Module Time: 3 full days (9.00am – 5.00pm) on 7^th, 9^th, and 11^th December 2020.
Reserve 7^th – 14^th December 2020 for TPE25 ONLY.
Reserve 12^th and 13^th December 2020 for conducting part I of the course assessment.
Reserve a compulsory Q&A session for the course assessment from 13:30 until 15:30 on 14^th December 2020.
There is a possibility that this course will be delivered online depending on when the Covid19 social distancing rules will be removed.
It is necessary for you to have a Window-based laptop for Excel modelling although it is possible that a Mac-based laptop can be used for Excel modelling. If this course is delivered in classroom and Cambridge, then there is a possibility that students use computers in the computer lab. In the latter, if you do not have a laptop, be prepared to stay in Cambridge for a few more days after 16^th December 2020 so that you can conduct Excel modelling in relation to your course assessment in the CJBS Computer Lab – subject to availability of the lab.
The level of mathematical theory may be below the expectation of some CUED students.

The emphasis is on management and design of technological projects. Examples and case studies will illustrate how theory can be adapted to actual conditions.

Day 1: Foundations

Course aims and objectives
Review of traditional project valuation
System value is a shape, not a number
Monte Carlo Simulation
(Valuing flexibility)

Preparatory reading:

de Neufville, R. and Scholtes, S. (2011), Ch 2: "Recognition of Uncertainty".
If you have not seen Net Present Value (NPV) or Discounted Cash Flows before, read Brealey and Meyers, Ch. 2: ‘Present values’.

Day 2: Portfolio Thinking

Diversification
Hedging
Trading off risk against return

Preparatory reading:

www.moneychimp.com/articles/risk/riskintro.htm, first five sections (short!) from ‘MPT Introduction’ to ‘Build a Portfolio’.
Optionally, Brealey and Meyers, Ch. 9: ‘Risk’ [For 8^th edition, use Ch. 8]

Day 3: Real Options Analysis

Flexibility: Intuition behind real options
Lattice valuations

Preparatory reading:

Brealey and Meyers, Ch. 10: ‘Project Analysis’, Ch. 20: ‘Understanding Options’ [For the 9^th edition, use Ch. 11, Ch. 21]
de Neufville and Scholtes (2011), Ch. I: ‘High Level Overview’ (pp. 1-39)

Further notes

Required software

Coursework

Coursework	Format	Due date & marks
100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%). Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations. Task II is a short presentation and is assessed by a set of criteria: intuition (business implication), prioritising information (structure), clarity and use of visual aids such as charts and graphs, and language.	Individually Assessed Answer Sheet, Presentation Document and Excel Files Anonymously marked	The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2021. Marks will be available in three-four weeks after the submission date.

Format

Due date

& marks

100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%).

Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations.

Individually Assessed

Answer Sheet, Presentation Document and Excel Files

Anonymously marked

The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2021.

Marks will be available in three-four weeks after the submission date.

Booklists

Please refer to the Booklist for Part IIB Courses for references to this module, this can be found on the associated Moodle course.

Module Webpage

To be advised: https://www.vle.cam.ac.uk

TPE25 Strategic Valuation

Reference Books

The following are available in multiple copies in the Judge Business School Information Centre:

de Neufville, R. and Scholtes, S. (2011)	Flexibility in Engineering Design. Cambridge, MA: MIT Press	E-book: https://ebookcentral.proquest.com/lib/CAM/detail.action?pq-origsite=prim... Printed book at: TA174.D46 2011
Brealey, R. A, Myers, S. C. and Allen, F. (2019) or Brealey, R. A, Myers, S. C. and Allen, F. (2008)	Principles of Corporate Finance. 13^th ed. Boston, Mass.: Irwin McGraw Hill 9^th ed. N.B. For Brealey and Myers, any edition from 6^th ed. onwards is fine.	Printed books at: HG4026.B73 P7 2011 E-book: https://www.vlebooks.com/Vleweb/Product/Index/1993343?page=0 HG4026.B73 P7 2008
Savage, S. L. (2003)	Decision Making with Insight. Belmont, CA: Brooks/Cole	Printed book at: HF5548.4.S38 2003
Luenberger, D. G. (1998)	Investment Science. Oxford: Oxford University Press	Printed book at: HG4515.2.L83

Examination Guidelines

Please refer to Form & conduct of the examinations.

UK-SPEC

This syllabus contributes to the following areas of the UK-SPEC standard:

Toggle display of UK-SPEC areas.

GT1

IA1

Apply appropriate quantitative science and engineering tools to the analysis of problems.

IA2

Demonstrate creative and innovative ability in the synthesis of solutions and in formulating designs.

KU1

Demonstrate knowledge and understanding of essential facts, concepts, theories and principles of their engineering discipline, and its underpinning science and mathematics.

KU2

Have an appreciation of the wider multidisciplinary engineering context and its underlying principles.

S1

The ability to make general evaluations of commercial risks through some understanding of the basis of such risks.

S2

Extensive knowledge and understanding of management and business practices, and their limitations, and how these may be applied appropriately to strategic and tactical issues.

E1

Ability to use fundamental knowledge to investigate new and emerging technologies.

E3

Ability to apply mathematical and computer based models for solving problems in engineering, and the ability to assess the limitations of particular cases.

P3

Understanding of contexts in which engineering knowledge can be applied (e.g. operations and management, technology, development, etc).

P8

Ability to apply engineering techniques taking account of a range of commercial and industrial constraints.

US1

A comprehensive understanding of the scientific principles of own specialisation and related disciplines.

US3

An understanding of concepts from a range of areas including some outside engineering, and the ability to apply them effectively in engineering projects.

Last modified: 12/09/2020 13:14

Engineering Tripos Part IIB, 4I1: Strategic Valuation, 2024-25

Module Leader

Prof. H Jiang

Lecturer

Prof. H Jiang

Lab Leader

Prof. H Jiang

Timing and Structure

Prerequisites

All participants are expected to be familiar with probability and statistics at the level of a final year high school or introductory undergraduate course. See the prerequisites document on the course website for details. Participants are also expected to be familiar with basic Excel spreadsheet modelling (see e.g., http://best-excel-tutorial.com/54-basics for a tutorial). The basic Excel functions and tasks that you must know how to use competently are: MAX, AVERAGE, COUNT, IF, SUMPRODUCT; mathematical formulas based on relative and absolute references; creating simple tables; and plotting pie, bar, column and line charts.

Aims

The aims of the course are to:

See below.

Objectives

As specific objectives, by the end of the course students should be able to:

See below.

Content

There will be an introduction session of the course in October 2024.

Module Time: 3 full days (9.00am – 5.00pm) on 9^th, 11^th, and 13^th December 2024.
Reserve 9^th – 16^th December 2024 for TPE25 ONLY.
Reserve 14^th and 15^th December 2024 to conduct part I of the course assessment.
Reserve a compulsory Q&A session for the course assessment on 16^th December 2024.
It is necessary for you to have a Window-based or MacOS laptop for Excel modelling. There is a possibility that students use computers in the computer lab. If you do not have a laptop, be prepared to stay in Cambridge for a few more days after 16^th December 2024 so that you can conduct Excel modelling in relation to your course assessment in the CJBS Computer Lab – subject to the availability of the lab.
The level of mathematical theory may be below the expectation of some CUED students.

The emphasis is on management and design of technological projects. Examples and case studies will illustrate how theory can be adapted to actual conditions.

Day 1: Foundations

Course aims and objectives
Review of traditional project valuation
System value is a shape, not a number
Monte Carlo Simulation
(Valuing flexibility)

Preparatory reading:

de Neufville, R. and Scholtes, S. (2011), Ch 2: "Recognition of Uncertainty".
If you have not seen Net Present Value (NPV) or Discounted Cash Flows before, read Brealey and Meyers, Ch. 2: ‘Present values’.

Day 2: Portfolio Thinking

Diversification
Hedging
Trading off risk against return

Preparatory reading:

www.moneychimp.com/articles/risk/riskintro.htm, first five sections (short!) from ‘MPT Introduction’ to ‘Build a Portfolio’.
Optionally, Brealey and Meyers, Ch. 9: ‘Risk’ [For 8^th edition, use Ch. 8]

Day 3: Real Options Analysis

Flexibility: Intuition behind real options
Lattice valuations

Preparatory reading:

Brealey and Meyers, Ch. 10: ‘Project Analysis’, Ch. 20: ‘Understanding Options’ [For the 9^th edition, use Ch. 11, Ch. 21]
de Neufville and Scholtes (2011), Ch. I: ‘High Level Overview’ (pp. 1-39)

Further notes

Required software

Coursework

Coursework	Format	Due date & marks
100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%). Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations. Task II is a short presentation and is assessed by a set of criteria: intuition (business implication), prioritising information (structure), clarity and use of visual aids such as charts and graphs, and language.	Individually Assessed Answer Sheet, Presentation Document and Excel Files Anonymously marked	The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2025. Marks will be available in three-four weeks after the submission date.

Format

Due date

& marks

100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%).

Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations.

Individually Assessed

Answer Sheet, Presentation Document and Excel Files

Anonymously marked

The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2025.

Marks will be available in three-four weeks after the submission date.

Booklists

Please refer to the Booklist for Part IIB Courses for references to this module, this can be found on the associated Moodle course.

Module Webpage

To be advised: https://www.vle.cam.ac.uk

TPE25 Strategic Valuation

Reference Books

The following are available in multiple copies in the Judge Business School Information Centre:

de Neufville, R. and Scholtes, S. (2011)	Flexibility in Engineering Design. Cambridge, MA: MIT Press	E-book: https://ebookcentral.proquest.com/lib/CAM/detail.action?pq-origsite=prim... Printed book at: TA174.D46 2011
Brealey, R. A, Myers, S. C. and Allen, F. (2019) or Brealey, R. A, Myers, S. C. and Allen, F. (2008)	Principles of Corporate Finance. 13^th ed. Boston, Mass.: Irwin McGraw Hill 9^th ed. N.B. For Brealey and Myers, any edition from 6^th ed. onwards is fine.	Printed books at: HG4026.B73 P7 2011 E-book: https://www.vlebooks.com/Vleweb/Product/Index/1993343?page=0 HG4026.B73 P7 2008
Savage, S. L. (2003)	Decision Making with Insight. Belmont, CA: Brooks/Cole	Printed book at: HF5548.4.S38 2003
Luenberger, D. G. (1998)	Investment Science. Oxford: Oxford University Press	Printed book at: HG4515.2.L83

Examination Guidelines

Please refer to Form & conduct of the examinations.

UK-SPEC

This syllabus contributes to the following areas of the UK-SPEC standard:

Toggle display of UK-SPEC areas.

GT1

IA1

Apply appropriate quantitative science and engineering tools to the analysis of problems.

IA2

Demonstrate creative and innovative ability in the synthesis of solutions and in formulating designs.

KU1

Demonstrate knowledge and understanding of essential facts, concepts, theories and principles of their engineering discipline, and its underpinning science and mathematics.

KU2

Have an appreciation of the wider multidisciplinary engineering context and its underlying principles.

S1

The ability to make general evaluations of commercial risks through some understanding of the basis of such risks.

S2

Extensive knowledge and understanding of management and business practices, and their limitations, and how these may be applied appropriately to strategic and tactical issues.

E1

Ability to use fundamental knowledge to investigate new and emerging technologies.

E3

Ability to apply mathematical and computer based models for solving problems in engineering, and the ability to assess the limitations of particular cases.

P3

Understanding of contexts in which engineering knowledge can be applied (e.g. operations and management, technology, development, etc).

P8

Ability to apply engineering techniques taking account of a range of commercial and industrial constraints.

US1

A comprehensive understanding of the scientific principles of own specialisation and related disciplines.

US3

An understanding of concepts from a range of areas including some outside engineering, and the ability to apply them effectively in engineering projects.

Last modified: 26/09/2024 18:28

Engineering Tripos Part IIB, 4I1: Strategic Valuation, 2025-26

Module Leader

Prof. H Jiang

Lecturer

Prof. H Jiang

Lab Leader

Prof. H Jiang

Timing and Structure

Prerequisites

All participants are expected to be familiar with probability and statistics at the level of a final year high school or introductory undergraduate course. See the prerequisites document on the course website for details. Participants are also expected to be familiar with basic Excel spreadsheet modelling (see e.g., http://best-excel-tutorial.com/54-basics for a tutorial). The basic Excel functions and tasks that you must know how to use competently are: MAX, AVERAGE, COUNT, IF, SUMPRODUCT; mathematical formulas based on relative and absolute references; creating simple tables; and plotting pie, bar, column and line charts.

Aims

The aims of the course are to:

See below.

Objectives

As specific objectives, by the end of the course students should be able to:

See below.

Content

There will be an introduction session for the course in October 2025. If you have any question, please contact techpol-enquiries@jbs.cam.ac.uk.

Module Time: 3 full days (9.00am – 5.30pm) on 8^th, 10^th, and 12^th December 2025.
Reserve 8^th – 15^th December 2025 for TPE25 ONLY.
Reserve 13^th and 14^th December 2025 to conduct part I of the course assessment.
Reserve a compulsory Q&A session for the course assessment on 15^th December 2025.
It is necessary for you to have a Window-based or MacOS laptop for Excel modelling. There is a possibility that students use computers in the computer lab. If you do not have a laptop, be prepared to stay in Cambridge for a few more days after 15^th December 2025, so that you can conduct Excel modelling in relation to your course assessment in the CJBS Computer Lab – subject to the availability of the lab.
The level of mathematical theory may be below the expectations of some CUED students.

The emphasis is on management and design of technological projects. Examples and case studies will illustrate how theory can be adapted to actual conditions.

Day 1: Foundations

Course aims and objectives
Review of traditional project valuation
System value is a shape, not a number
Monte Carlo Simulation
(Valuing flexibility)

Preparatory reading:

de Neufville, R. and Scholtes, S. (2011), Ch 2: "Recognition of Uncertainty".
If you have not seen Net Present Value (NPV) or Discounted Cash Flows before, read Brealey and Meyers, Ch. 2: ‘Present values’.

Day 2: Portfolio Thinking

Diversification
Hedging
Trading off risk against return

Preparatory reading:

www.moneychimp.com/articles/risk/riskintro.htm, first five sections (short!) from ‘MPT Introduction’ to ‘Build a Portfolio’.
Optionally, Brealey and Meyers, Ch. 9: ‘Risk’ [For 8^th edition, use Ch. 8]

Day 3: Real Options Analysis

Flexibility: Intuition behind real options
Lattice valuations

Preparatory reading:

Brealey and Meyers, Ch. 10: ‘Project Analysis’, Ch. 20: ‘Understanding Options’ [For the 9^th edition, use Ch. 11, Ch. 21]
de Neufville and Scholtes (2011), Ch. I: ‘High Level Overview’ (pp. 1-39)

Further notes

Required software

Coursework

Coursework	Format	Due date & marks
100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%). Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations. Task II is a short presentation and is assessed by a set of criteria: intuition (business implication), prioritising information (structure), clarity and use of visual aids such as charts and graphs, and language.	Individually Assessed Answer Sheet, Presentation Document and Excel Files Anonymously marked	The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2026. Marks will be available in three-four weeks after the submission date.

Format

Due date

& marks

100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%).

Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations.

Individually Assessed

Answer Sheet, Presentation Document and Excel Files

Anonymously marked

The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2026.

Marks will be available in three-four weeks after the submission date.

Booklists

Please refer to the Booklist for Part IIB Courses for references to this module, this can be found on the associated Moodle course.

Module Webpage

To be advised: https://www.vle.cam.ac.uk

TPE25 Strategic Valuation

Reference Books

The following are available in multiple copies in the Judge Business School Information Centre:

de Neufville, R. and Scholtes, S. (2011)	Flexibility in Engineering Design. Cambridge, MA: MIT Press	E-book: https://ebookcentral.proquest.com/lib/CAM/detail.action?pq-origsite=prim... Printed book at: TA174.D46 2011
Brealey, R. A, Myers, S. C. and Allen, F. (2019) or Brealey, R. A, Myers, S. C. and Allen, F. (2008)	Principles of Corporate Finance. 13^th ed. Boston, Mass.: Irwin McGraw Hill 9^th ed. N.B. For Brealey and Myers, any edition from 6^th ed. onwards is fine.	Printed books at: HG4026.B73 P7 2011 E-book: https://www.vlebooks.com/Vleweb/Product/Index/1993343?page=0 HG4026.B73 P7 2008
Savage, S. L. (2003)	Decision Making with Insight. Belmont, CA: Brooks/Cole	Printed book at: HF5548.4.S38 2003
Luenberger, D. G. (1998)	Investment Science. Oxford: Oxford University Press	Printed book at: HG4515.2.L83

Examination Guidelines

Please refer to Form & conduct of the examinations.

UK-SPEC

This syllabus contributes to the following areas of the UK-SPEC standard:

Toggle display of UK-SPEC areas.

GT1

IA1

Apply appropriate quantitative science and engineering tools to the analysis of problems.

IA2

Demonstrate creative and innovative ability in the synthesis of solutions and in formulating designs.

KU1

Demonstrate knowledge and understanding of essential facts, concepts, theories and principles of their engineering discipline, and its underpinning science and mathematics.

KU2

Have an appreciation of the wider multidisciplinary engineering context and its underlying principles.

S1

The ability to make general evaluations of commercial risks through some understanding of the basis of such risks.

S2

Extensive knowledge and understanding of management and business practices, and their limitations, and how these may be applied appropriately to strategic and tactical issues.

E1

Ability to use fundamental knowledge to investigate new and emerging technologies.

E3

Ability to apply mathematical and computer based models for solving problems in engineering, and the ability to assess the limitations of particular cases.

P3

Understanding of contexts in which engineering knowledge can be applied (e.g. operations and management, technology, development, etc).

P8

Ability to apply engineering techniques taking account of a range of commercial and industrial constraints.

US1

A comprehensive understanding of the scientific principles of own specialisation and related disciplines.

US3

An understanding of concepts from a range of areas including some outside engineering, and the ability to apply them effectively in engineering projects.

Last modified: 19/06/2025 21:32

Engineering Tripos Part IIB, 4I1: Strategic Valuation, 2019-20

Module Leader

Dr H Jiang

Lecturer

Dr H Jiang

Lab Leader

Dr H Jiang

Timing and Structure

Prerequisites

Aims

The aims of the course are to:

See below.

Objectives

As specific objectives, by the end of the course students should be able to:

See below.

Content

Module Time: 3 full days (9.00am – 5.00pm) on 9th, 11th, and 13th December 2019.
Reserve 9th – 16th December 2019 for TPE25 only.
Reserve 14th - 15th December 2019 for conducting part I of the course assessment.
Reserve a compulsory Q&A session for the course assessment at 9am-11am on 16^th December 2019.
It is useful for you to have a Window-based laptop for Excel modelling. If you do not have a laptop, be prepared to stay in Cambridge for a few more days after 16^th December 2019 so that you can conduct Excel modelling in the CJBS Computer Lab.
The level of mathematical theory may be below the expectation of some CUED students.

The emphasis is on management and design of technological projects. Examples and case studies will illustrate how theory can be adapted to actual conditions.

Day 1: Foundations

Course aims and objectives
Review of traditional project valuation
System value is a shape, not a number
Monte Carlo Simulation
(Valuing flexibility)

Preparatory reading:

Savage (2003), Ch. 2: ‘The building blocks of uncertainty: random variables’, Ch. 3: ‘The buildings of uncertainty: functions of random variables’.
If you have not seen Net Present Value (NPV) or Discounted Cash Flows before, read Brealey and Meyers, Ch. 2: ‘Present values’

Day 2: Portfolio Thinking

Diversification
Hedging
Trading off risk against return

Preparatory reading:

www.moneychimp.com/articles/risk/riskintro.htm, first five sections (short!) from ‘MPT Introduction’ to ‘Build a Portfolio’.
Optionally, Brealey and Meyers, Ch. 9: ‘Risk’ [For 8^th edition, use Ch. 8]

Day 3: Real Options Analysis

Flexibility: Intuition behind real options
Lattice valuations

Preparatory reading:

Brealey and Meyers, Ch. 10: ‘Project Analysis’, Ch. 20: ‘Understanding Options’ [For the 9^th edition, use Ch. 11, Ch. 21]
de Neufville and Scholtes (2011), Ch. I: ‘High Level Overview’ (pp. 1-39)

Further notes

Required software

Coursework

Coursework	Format	Due date & marks
100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%). Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations. Task II is a short presentation and is assessed by a set of criteria: intuition (business implication), prioritising information (structure), clarity and use of visual aids such as charts and graphs, and language.	Individually Assessed Answer Sheet, Presentation Document and Excel Files anonymously marked	The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2019. Marks will be available in three-four weeks after the submission date.

Format

Due date

& marks

100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%).

Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations.

Individually Assessed

Answer Sheet, Presentation Document and Excel Files

anonymously marked

The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2019.

Marks will be available in three-four weeks after the submission date.

Booklists

Please see the Booklist for Group I Courses for references for this module.

Module Webpage

To be advised: https://www.vle.cam.ac.uk/course/view.php?id=83341

TPE6 Strategic Valuation

Reference Books

The following are available in multiple copies in the Judge Business School Information Centre:

de Neufville, R. and Scholtes, S. (2011)	Flexibility in Engineering Design. Cambridge, MA: MIT Press	E-book via Dawsonera (Click on ‘institutional login’) Printed book at: TA174.D46 2011
Brealey, R. A, Myers, S. C. and Allen, F. (2011) or Brealey, R. A, Myers, S. C. and Allen, F. (2008)	Principles of Corporate Finance. 10^th ed. Boston, Mass.: Irwin McGraw Hill 9^th ed. N.B. For Brealey and Myers, any edition from 6^th ed. onwards is fine.	Printed books at: HG4026.B73 P7 2011 HG4026.B73 P7 2008
Savage, S. L. (2003)	Decision Making with Insight. Belmont, CA: Brooks/Cole	Printed book at: HF5548.4.S38 2003
Luenberger, D. G. (1998)	Investment Science. Oxford: Oxford University Press	Printed book at: HG4515.2.L83

Examination Guidelines

Please refer to Form & conduct of the examinations.

UK-SPEC

This syllabus contributes to the following areas of the UK-SPEC standard:

Toggle display of UK-SPEC areas.

GT1

IA1

Apply appropriate quantitative science and engineering tools to the analysis of problems.

IA2

Demonstrate creative and innovative ability in the synthesis of solutions and in formulating designs.

KU1

Demonstrate knowledge and understanding of essential facts, concepts, theories and principles of their engineering discipline, and its underpinning science and mathematics.

KU2

Have an appreciation of the wider multidisciplinary engineering context and its underlying principles.

S1

The ability to make general evaluations of commercial risks through some understanding of the basis of such risks.

S2

Extensive knowledge and understanding of management and business practices, and their limitations, and how these may be applied appropriately to strategic and tactical issues.

E1

Ability to use fundamental knowledge to investigate new and emerging technologies.

E3

Ability to apply mathematical and computer based models for solving problems in engineering, and the ability to assess the limitations of particular cases.

P3

Understanding of contexts in which engineering knowledge can be applied (e.g. operations and management, technology, development, etc).

P8

Ability to apply engineering techniques taking account of a range of commercial and industrial constraints.

US1

A comprehensive understanding of the scientific principles of own specialisation and related disciplines.

US3

An understanding of concepts from a range of areas including some outside engineering, and the ability to apply them effectively in engineering projects.

Last modified: 05/06/2019 10:45

Engineering Tripos Part IIB, 4I1: Strategic Valuation, 2022-23

Module Leader

Prof. H Jiang

Lecturer

Prof. H Jiang

Lab Leader

Prof. H Jiang

Timing and Structure

Prerequisites

All participants are expected to be familiar with probability and statistics at the level of a final year high school or introductory undergraduate course. See the prerequisites document on the course website for details. Participants are also expected to be familiar with basic Excel spreadsheet modelling (see e.g., http://best-excel-tutorial.com/54-basics for a tutorial). The basic Excel functions and tasks that you must know how to use competently are: MAX, AVERAGE, COUNT, IF, SUMPRODUCT; mathematical formulas based on relative and absolute references; creating simple tables; and plotting pie, bar, column and line charts.

Aims

The aims of the course are to:

See below.

Objectives

As specific objectives, by the end of the course students should be able to:

See below.

Content

Module Time: 3 full days (9.00am – 5.00pm) on 5^th, 7^th, and ^9th December 2022.
Reserve 5^th – 12^th December 2022 for TPE25 ONLY.
Reserve 10^th and 11^th December 2022 for conducting part I of the course assessment.
Reserve a compulsory Q&A session for the course assessment on 12^th December 2022.
There is a possibility that this course will be delivered online depending on when the Covid19 social distancing rules will be removed.
It is necessary for you to have a Window-based laptop for Excel modelling although it is possible that a Mac-based laptop can be used for Excel modelling. If this course is delivered in classroom and Cambridge, then there is a possibility that students use computers in the computer lab. In the latter, if you do not have a laptop, be prepared to stay in Cambridge for a few more days after 12^th December 2022 so that you can conduct Excel modelling in relation to your course assessment in the CJBS Computer Lab – subject to availability of the lab.
The level of mathematical theory may be below the expectation of some CUED students.

The emphasis is on management and design of technological projects. Examples and case studies will illustrate how theory can be adapted to actual conditions.

Day 1: Foundations

Course aims and objectives
Review of traditional project valuation
System value is a shape, not a number
Monte Carlo Simulation
(Valuing flexibility)

Preparatory reading:

de Neufville, R. and Scholtes, S. (2011), Ch 2: "Recognition of Uncertainty".
If you have not seen Net Present Value (NPV) or Discounted Cash Flows before, read Brealey and Meyers, Ch. 2: ‘Present values’.

Day 2: Portfolio Thinking

Diversification
Hedging
Trading off risk against return

Preparatory reading:

www.moneychimp.com/articles/risk/riskintro.htm, first five sections (short!) from ‘MPT Introduction’ to ‘Build a Portfolio’.
Optionally, Brealey and Meyers, Ch. 9: ‘Risk’ [For 8^th edition, use Ch. 8]

Day 3: Real Options Analysis

Flexibility: Intuition behind real options
Lattice valuations

Preparatory reading:

Brealey and Meyers, Ch. 10: ‘Project Analysis’, Ch. 20: ‘Understanding Options’ [For the 9^th edition, use Ch. 11, Ch. 21]
de Neufville and Scholtes (2011), Ch. I: ‘High Level Overview’ (pp. 1-39)

Further notes

Required software

Coursework

Coursework	Format	Due date & marks
100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%). Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations. Task II is a short presentation and is assessed by a set of criteria: intuition (business implication), prioritising information (structure), clarity and use of visual aids such as charts and graphs, and language.	Individually Assessed Answer Sheet, Presentation Document and Excel Files Anonymously marked	The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2023. Marks will be available in three-four weeks after the submission date.

Format

Due date

& marks

100% individual project combining spreadsheet modelling, written analysis and a management-style report. The coursework consists of two parts: Task I (65%-70%) and Task II (30%-35%).

Task I contains a number of subtasks, in which students are asked to conduct intensive Excel modelling, to answer questions, to provide analysis, and to give intuitive business interpretations.

Individually Assessed

Answer Sheet, Presentation Document and Excel Files

Anonymously marked

The coursework will be carried out during Michaelmas/Lent term break and will be submitted right before the beginning of the Lent term in January 2023.

Marks will be available in three-four weeks after the submission date.

Booklists

Please refer to the Booklist for Part IIB Courses for references to this module, this can be found on the associated Moodle course.

Module Webpage

To be advised: https://www.vle.cam.ac.uk

TPE25 Strategic Valuation

Reference Books

The following are available in multiple copies in the Judge Business School Information Centre:

de Neufville, R. and Scholtes, S. (2011)	Flexibility in Engineering Design. Cambridge, MA: MIT Press	E-book: https://ebookcentral.proquest.com/lib/CAM/detail.action?pq-origsite=prim... Printed book at: TA174.D46 2011
Brealey, R. A, Myers, S. C. and Allen, F. (2019) or Brealey, R. A, Myers, S. C. and Allen, F. (2008)	Principles of Corporate Finance. 13^th ed. Boston, Mass.: Irwin McGraw Hill 9^th ed. N.B. For Brealey and Myers, any edition from 6^th ed. onwards is fine.	Printed books at: HG4026.B73 P7 2011 E-book: https://www.vlebooks.com/Vleweb/Product/Index/1993343?page=0 HG4026.B73 P7 2008
Savage, S. L. (2003)	Decision Making with Insight. Belmont, CA: Brooks/Cole	Printed book at: HF5548.4.S38 2003
Luenberger, D. G. (1998)	Investment Science. Oxford: Oxford University Press	Printed book at: HG4515.2.L83

Examination Guidelines

Please refer to Form & conduct of the examinations.

UK-SPEC

This syllabus contributes to the following areas of the UK-SPEC standard:

Toggle display of UK-SPEC areas.

GT1

IA1

Apply appropriate quantitative science and engineering tools to the analysis of problems.

IA2

Demonstrate creative and innovative ability in the synthesis of solutions and in formulating designs.

KU1

Demonstrate knowledge and understanding of essential facts, concepts, theories and principles of their engineering discipline, and its underpinning science and mathematics.

KU2

Have an appreciation of the wider multidisciplinary engineering context and its underlying principles.

S1

The ability to make general evaluations of commercial risks through some understanding of the basis of such risks.

S2

Extensive knowledge and understanding of management and business practices, and their limitations, and how these may be applied appropriately to strategic and tactical issues.

E1

Ability to use fundamental knowledge to investigate new and emerging technologies.

E3

Ability to apply mathematical and computer based models for solving problems in engineering, and the ability to assess the limitations of particular cases.

P3

Understanding of contexts in which engineering knowledge can be applied (e.g. operations and management, technology, development, etc).

P8

Ability to apply engineering techniques taking account of a range of commercial and industrial constraints.

US1

A comprehensive understanding of the scientific principles of own specialisation and related disciplines.

US3

An understanding of concepts from a range of areas including some outside engineering, and the ability to apply them effectively in engineering projects.

Last modified: 18/06/2022 11:24

Engineering Tripos Part IIB, 4M16: Nuclear Power Engineering (shared with IIA), 2019-20

Module Leader

Dr G T Parks

Lecturers

Dr G T Parks, Dr E Shwageraus and Mr R L Skelton

Timing and Structure

Lent term. 12 lectures + 2 examples classes + 2 laboratory demonstrations. Assessment: 100% exam

Aims

The aims of the course are to:

give the student an introduction to and appreciation of nuclear power engineering and the UK nuclear industry

Objectives

As specific objectives, by the end of the course students should be able to:

appreciate the nature of neutron-nucleus interactions
classify ionising radiation by physical nature and health hazard
conduct safely a simple experiment involving radiation
understand the principles of radiation detection and shielding
understand the principles of operation of UK nuclear reactors
apply elementary models of neutron behaviour in reactors
compute simple power distributions in reactors
compute simple temperature distributions in reactors and appreciate their consequences
appreciate the significance of delayed neutrons and xenon-135 to the control and operation of reactors
appreciate the advantages and disadvantages of on-load and off-load refuelling
perform simple calculations to predict the refuelling requirements of reactors
explain the operation of enrichment plant
appreciate the problems of radioactive waste management
appreciate the range of activities of the UK nuclear industry

Content

This module aims to give the student an introduction to and appreciation of nuclear power engineering and the UK nuclear industry, particularly the technology used in the production of electricity in nuclear power stations, the preparation and subsequent treatment of the fuel and its by-products, and the detection of ionising radiation and the protection of workers within the nuclear industry and the general public from it.

Basic Principles and Health Physics (2L, Dr E Shwageraus)

Principles of nuclear reactions;
Radioactivity and the effects of ionising radiation;
Introduction to health physics and shielding.

Reactor Physics (3L, Dr G T Parks)

The fission chain process;
Interactions of neutrons with matter;
Models for neutron distributions in space and energy.

Reactor Design & Operation (4L, Dr G T Parks)

Simple reactor design;
Heat transfer and temperature distributions in commercial reactors;
Time dependent aspects of reactor operations; delayed neutrons and xenon poisoning;
In-core and out-of-core fuel cycles.

Fuel Processing (3L, Mr R L Skelton)

Enrichment and reprocessing;
The containment and disposal of radioactive wastes.

LABORATORY DEMONSTRATIONS

Demonstration of the use of Geiger-Muller and scintillation counters for detecting ionising radiation (1 hour in-lecture time).

Demonstration of the detection and shielding of fast and thermal neutrons using a 37 GBq Americium-Beryllium source (1 hour in-lecture time).

Booklists

Please see the Booklist for Group M Courses for references for this module.

Examination Guidelines

Please refer to Form & conduct of the examinations.

UK-SPEC

This syllabus contributes to the following areas of the UK-SPEC standard:

Toggle display of UK-SPEC areas.

GT1

IA1

Apply appropriate quantitative science and engineering tools to the analysis of problems.

IA2

Demonstrate creative and innovative ability in the synthesis of solutions and in formulating designs.

KU1

Demonstrate knowledge and understanding of essential facts, concepts, theories and principles of their engineering discipline, and its underpinning science and mathematics.

KU2

Have an appreciation of the wider multidisciplinary engineering context and its underlying principles.

S1

The ability to make general evaluations of commercial risks through some understanding of the basis of such risks.

S4

Awareness of the framework of relevant legal requirements governing engineering activities, including personnel, health, safety, and risk (including environmental risk) issues.

E1

Ability to use fundamental knowledge to investigate new and emerging technologies.

E2

Ability to extract data pertinent to an unfamiliar problem, and apply its solution using computer based engineering tools when appropriate.

E3

Ability to apply mathematical and computer based models for solving problems in engineering, and the ability to assess the limitations of particular cases.

P1

A thorough understanding of current practice and its limitations and some appreciation of likely new developments.

P3

Understanding of contexts in which engineering knowledge can be applied (e.g. operations and management, technology, development, etc).

US1

A comprehensive understanding of the scientific principles of own specialisation and related disciplines.

US3

An understanding of concepts from a range of areas including some outside engineering, and the ability to apply them effectively in engineering projects.

Last modified: 29/07/2019 12:28

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Overview - Class Introduction (Michael Pollitt)

Environmental Effects of Fossil Fuel Use and what to do about them (Michael Pollitt)

Electricity Demand (Michael Pollitt)

Fossil fuel generation, storage and future electricity markets (Michael Pollitt)

Renewables and the Electricity System (Michael Pollitt)

Electrification of heating and transport? Electricity in Net Zero (Michael Pollitt)

Electricity Networks for Net Zero (Stephan Goetz)

Nuclear Power, Electricity Security and EU Policy (Michael Pollitt)

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UK-SPEC

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P3

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Module Leader

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Timing and Structure

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Day 1: Foundations

Day 2: Portfolio Thinking

Day 3: Real Options Analysis

Further notes

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Examination Guidelines

UK-SPEC

GT1

IA1

IA2

KU1

KU2

S1

S2

E1

E3

P3

P8

US1

US3

Module Leader

Lecturer

Lab Leader

Timing and Structure

Prerequisites

Aims

Objectives

Content

Day 1: Foundations

Day 2: Portfolio Thinking

Day 3: Real Options Analysis

Further notes

Coursework

Booklists