Projectappraisal
Projectappraisal
Projectappraisal
Appraisal
1
Contents
Project
appraisal
Definition
Aspects of project
appraisal Market appraisal
Technical appraisal
Financial appraisal
Socio economic
appraisal Ecological
appraisal 2
Definition
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
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.)
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
Means of financing
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