TIØ4140 - Project Evaluation and Financing


Examination arrangement

Examination arrangement: Aggregate score
Grade: Letter grades

Evaluation Weighting Duration Grade deviation Examination aids
Assignment 30/100
School exam 70/100 4 hours A

Course content

The course builds on and expands the students' skills in financial theory and applications, focusing on asset/option pricing theory in particular. Assets include derivatives such as futures, forwards, swaps and options. This is used in analysing financial securities/instruments and real assets, and in project evaluation under uncertainty using real option analysis. We analyse the most common financial derivatives markets and its products. The course includes a description of technical and economic characteristics of project risk and an option-based valuation of flexibility in projects. The knowledge and theory is also applied to analysis of compound investment strategies, financial instruments, large-scale investments and project finance, and entrepreneurial finance and valuation of small projects.

Learning outcome

Position and function within the study program: This is an elective course in the 8. semester of the MTIØT program, and is part of the qualification for the specialization in Financial Engineering. It builds on TIØ4145 Corporate Finance. We make use of the knowledge gained in the compulsory courses in mathematics, statistics and information technology, and in TIØ4118 Industrial Economic Analyses. The course fits well with TIØ4317 Empirical and Quantitative Methods in Finance. It contributes to the learning objective of the MTIØT program, point 4.1, regarding Asset pricing models, Valuation and optimal exercise of financial and real options, and Financial risk measurement and management. The course will convey the following knowledge: - The theoretical foundation regarding project evaluation and asset pricing under uncertainty. The course will develop the following skills: - Training to think about general projects as a collection of real options. - The students should aquire the skills necessary to analyse stylized projects under uncertainty, and to value and hedge cash flows coming from positions in common derivative financial securities. Other important learning objectives: - Give training in implementation of financial models in spreadsheets and other relevant software.

Learning methods and activities

Lectures and exercises. The course language will be English.

Compulsory assignments

  • Exercise

Further on evaluation

In order to have access to the exam, the students need to get the exercises approved. More details will be given at the course start.

Students retaking the course must retake all parts.

Course materials

Assigned at course start.

Credit reductions

Course code Reduction From To
TIØ4146 3.7 AUTUMN 2010
IF400 6.0 AUTUMN 2017
More on the course



Version: 1
Credits:  7.5 SP
Study level: Second degree level


Term no.: 1
Teaching semester:  SPRING 2025

Language of instruction: English

Location: Trondheim

Subject area(s)
  • Technological subjects
Contact information


Examination arrangement: Aggregate score

Term Status code Evaluation Weighting Examination aids Date Time Examination system Room *
Spring ORD School exam 70/100 A INSPERA
Room Building Number of candidates
Spring ORD Assignment 30/100 INSPERA
Room Building Number of candidates
Summer UTS School exam 70/100 A INSPERA
Room Building Number of candidates
  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

More on examinations at NTNU