23-08-2012, 04:07 PM
Methods of Project Appraisal
1Methods of Project Appraisal.ppt (Size: 312 KB / Downloads: 46)
Meaning of Project Appraisal: -
Project Appraisal is the analysis of costs and benefits of a proposed project with a
goal of assuring a rational allocation of limited financial resources amongst alternate
Investment opportunities with the objective of achieving specific goals.
Project Appraisal is mainly the process of transmitting information accumulated through feasibility studies into a comprehensive form in order to enable the decision maker undertake a comprehensive appraisal of various projects and embark on a specific project or projects by allocating resources.
The various Factors considered by Financial Institutions while appraising a project are: -
Technical, Financial, Economic, Commercial, Social and Managerial Factors.
Objectives & Scope: -
To extract relevant information for determining the success or failure of a project.
To apply standard yardsticks for determining the rate of success or failure of a project.
To determine the expected costs and benefits of the project.
To arrive at specific conclusions regarding the project.
Significance: -
It helps in arriving at specific and predicted results.
It evaluates the desirability of the project.
It provides information to determine the success or failure of a project.
It employs existing norms to predict the rate of success or failure of the project.
It verifies the hypothesis framed for the project.