Planning Economics: Evaluating Projects with Internal Rate of Return

How do urban planners and real estate developers decide which projects are financially viable? Understanding the economic metrics behind large-scale developments is crucial for making smart, sustainable planning decisions. This course guides you through the core principles of planning economics, focusing on the Internal Rate of Return (IRR) and its role in project evaluation. You will transition from understanding basic financial concepts to confidently evaluating the economic feasibility of real-world development projects. By learning how to calculate, interpret, and compare IRR alongside modern sustainability metrics, you will gain the analytical skills needed to guide planning and investment strategies. What you'll learn: Learn the core principles of planning economics and the time value of money; Calculate and interpret the Internal Rate of Return (IRR) and Net Present Value (NPV); Analyze cash flow models for urban development and real estate projects; Compare competing projects using modern financial evaluation frameworks; Integrate environmental, social, and governance (ESG) factors into traditional economic analysis; Identify the limitations of IRR and apply complementary financial metrics. This course begins with foundational economic terminology and the mechanics of cash flows, progressing systematically to hands-on evaluation scenarios using modern spreadsheet formulas. It is designed specifically for beginners in urban planning, real estate, and public policy, with no prior background in finance required. Start building your financial analysis skills and make data-driven planning decisions today.