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Projectappraisal

Project appraisal involves comprehensively assessing all aspects of a proposed project, including market demand, technical feasibility, financial viability, socioeconomic impacts, and environmental effects. It determines the overall feasibility of a project and measures its investment worth to inform implementation and later evaluation. Key components of project appraisal are analyzing market demand and share, technical requirements and constraints, financial cash flows and risks, social costs and benefits, and ecological impacts on air, water, noise, vegetation and human life. The appraisal process lays the foundation for deciding whether an investment in a project is worthwhile.

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Shivani Mahajan
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0% found this document useful (0 votes)
38 views18 pages

Projectappraisal

Project appraisal involves comprehensively assessing all aspects of a proposed project, including market demand, technical feasibility, financial viability, socioeconomic impacts, and environmental effects. It determines the overall feasibility of a project and measures its investment worth to inform implementation and later evaluation. Key components of project appraisal are analyzing market demand and share, technical requirements and constraints, financial cash flows and risks, social costs and benefits, and ecological impacts on air, water, noise, vegetation and human life. The appraisal process lays the foundation for deciding whether an investment in a project is worthwhile.

Uploaded by

Shivani Mahajan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Project

Appraisal

1
Contents
 Project
appraisal
Definition
 Aspects of project
appraisal Market appraisal
Technical appraisal
Financial appraisal
Socio economic
appraisal Ecological
 appraisal 2
Definition

 Pre investment analysis of a project with a


view to determining the overall feasibility and
measures its investment worth which
provides a comprehensive review
/assessment of all aspects of project that lays
the foundation for implementation and
evaluation when it is completed.

3
ASPECTS OF PROJECT APPRAISAL

Market
appraisal

Financial
appraisal Project Technical
appraisal appraisal

Ecological Economic
appraisal appraisal

4
Market appraisal
It is one of the major areas of
introducing of any products in market .
In that case , must be considered this
things before launching in a market.
 What would be the aggregate
demand of the proposed product or
service?
 What would be the market share of
the project under appraisal?

5
Market appraisal
(Issues)
 Past and current demand trends
 Past and current supply position
 Production possibilities and constraints
 Imports and exports
 Nature of competition
 Cost structure
 Elasticity of demand

6
Market appraisal
(Issues contd.)
 Consumer behavior
motivation, attitudes,
preferences, requirements
 Distribution channels
marketing policies

7
Technical appraisal

 Whether prerequisites for the success of


project considered ?
 Good choices with regard to location ,
size, process, machines etc.

8
Technical appraisal
(Issues)
 Preliminary tests and studies
 Availability of raw materials, power and other
inputs
 Optimal scale of operations
 Choice of suitable production process
 Choice of appropriate machines
and equipment
 Effluents and waste disposal
9
Technical appraisal
(Issues contd.)

 Proper layout of plant and


buildings
 Realistic work schedules
 Socially acceptable technology

10
Economic appraisal
 Social cost –benefit analysis
 Impact on level of savings and
investments in society
 Impact on fulfilment of national
goals Self sufficiency
Employm
ent Social
order
11
Ecological appraisal

 Impact of project on quality


of Air
 Wat
 er
 Noise
 Vegetati
on
Human
life 12
Ecological appraisal
(contd)
 Major projects such as these cause
environmental damage
Power plants
Irrigation
schemes
Industries like leather
processing,
chemical
s etc. 13
Financial appraisal

 Whether the project is financially


viable ?
 Servicing debt

 Meeting return expectations

 Investment and phasing of the total cost

 Means of financing

 Break even point

 Cash flows in the project

14
Financial appraisal
(contd)
 Investment
worthwhile ?
Net present value
Internal rate of
return Pay back
period
 Level of risk

15
LIMITATIONS OF THE PROJECT APPRAISAL

- Quality of project analysis depends on the quality of


data and forecast made about costs and benefits. Over-
estimation of benefits and underestimation of costs is
quite common to get the project approved.
- In view of the uncertainty about the future it is
impossible to quantify completely the risks.
- It is a useful device where benefits can be quantified.
- Project analysis is useful when there is a definite starting
and finishing points.
16
Conclusion

 A project feasibility report


includes Market and demand a
nalysis Technical analysis
Financial analysis
Socio economic
analysis Ecological
analysis
 This analysis helps the decision maker
in making the right choice of the 17
18

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