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PROJECT APPRAISALPROJECT APPRAISAL
TEAM MEMBERS
SIMMI S. LAL 09MBA006
SHALINI SINHA 09MBA022VARSHA PRASAD 09MBA023
ARVIND OJHA 09MBA024
MUBBASHIR ALI 09MBA025
SUPRABHA KUMARI 09MBA026
PAWAN BARNWAL 09MBA027
SUDHIR KUMAR 09MBA029
MONIKA TIWARY 09MBA030
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CONCEPT OF PROJECT
APPRAISAL
Fusionof two termsProject
Appraisal
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PROJECTPROJECT A project is a business and service,
is a collaboration enterprise,
frequently involving research for
design that is careful planned to
achieve a particular aim.
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APPRAISAL
A Judgment or opinion of
something or somebody especially
one that assess effectiveness andusefulness.
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PROJECT APPRAISAL
Project appraisal means the assessment of a
project.
Project appraisal is a cost and benefit analysis of
different expect of proposed project.
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CONTINUED:
An entrepreneur need to appraise various
alternative project. Thus project analysis help in
selecting the best project among availablealternative project.
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CONTINUED:
For a financial institutions, Project appraisal is
a process whereby a leading financial institution
makes an independent and objective assessmentof various aspects of an investment proposition
for arriving at a financial decision and is aimed
at determining the viability of a project.
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METHODS OF PROJECTMETHODS OF PROJECT
APPRAISALAPPRAISAL
1. ECONOMIC ANALYSIS
2. FINANCIAL ANALYSIS3. MARKET ANALYSIS
4. TECHNICAL FEASIBILITY
5. MANAGERIAL COMPETENCE
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1. ECONOMIC ANALYSIS1. ECONOMIC ANALYSIS
It is systematic approach to determine the
optimum use of scarce resources, involves
comparison of two or more alternatives in
achieving a specific objectives under the given
constraints and assumptions.
It takes into account the opportunity costs of
resources employed and measures in monetary
terms the private and social costs and benefits
of the projects.
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CONTINUED:
Economic Analysis consists of raw material,
level of capacity utilization, anticipated sales,
anticipated expenses and the probable
profits.
Profit is must for any enterprise because
demand for the product and sales is
anticipated.
Government
Policies is taken into
consideration in deciding about the industries
to be setup in backward areas because of
specific incentive and concessions are
given.
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2. FINANCIAL ANALYSIS2. FINANCIAL ANALYSIS
Financial analysis refers to the
assessment of the viability,stability and profitability of a
project.
Finance is regarded as lifeblood
to an enterprise.
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ASSESSMENT OF FINANCIALASSESSMENT OF FINANCIAL
REQUIREMENTREQUIREMENTI. FIXED CAPITAL are those tangible and
material facilities which purchased once
are used again and again. E.g. land &building, plant & machinery etc.
II. WORKING CAPITAL it means excess of
current assets over current liabilities. Inother words, it is a funds which is needed in
day today business operations. It is a
circulating money changing from
inventories to receivables then converted
into cash.
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CONTINUED:
Fixed Capital requirements relates to:-
cost of assets
architect and engineers fees
electrification and installation charges ofmachinery
depreciation and pre-operation expenses of
the trial runs.
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CURRENT ASSETS refers to the assets which
can be converted into cash within a year. E.g.
accounts receivables, inventories, marketablesecurities etc.
CURRENT LIABILITIES are those obligations
which can be payable within a period of one
year. E.g. accounts payable, bank overdraft,outstanding expenses.
The major goal ofworking capital is to
manage firms current assets and liabilities in
such a way that a satisfactory level of working
capital is maintained, so that the firm doesnt
become insolvent or forced into bankruptcy.
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LIFE CYCLE SEGMENTATIONLIFE CYCLE SEGMENTATION
1. Every product has its own life span.
2. A product sell slowly in the beginning, andafter promotion strategies its sales pick up.
3. In a due course of time, the peak sale is
reached, after some time the product losesits demand and dies.
4. This is called PLC that is product life cycle.
5. PLC is divided into five stages:
Introduction Growth
Maturity
Saturation
Decline
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MARKETING OBJECTIVESMARKETING OBJECTIVES
Introduction
Growth Maturity
Saturation
Decline
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MARKETING
OBJECTIVES
INTRODUCTION GROWTH MATURITY DECLINE
AwarenessAwareness
&&
trialtrial
MaximizeMaximize
MarketMarket
shareshare
MaximizeMaximize
profit whileprofit while
defendingdefending
marketmarket
shareshare
ReduceReduce
expenditureexpenditure
&&
milk themilk the
brand.brand.
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4. TECHNICAL FEASIBILITY4. TECHNICAL FEASIBILITY
It implies to mean the adequacy of proposed plantIt implies to mean the adequacy of proposed plant
& equipment to produce the product within the& equipment to produce the product within the
prescribed norms.prescribed norms. It is basically the terms and conditions or theIt is basically the terms and conditions or the
norms within which the product is to be produced.norms within which the product is to be produced.
In case if project requires any collaboration thenIn case if project requires any collaboration then
the terms and conditions of the collaborationthe terms and conditions of the collaboration
should be known.should be known.
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THESE ARE SOME INPUTS COVERED
IN THE PROJECT WHICH MUST BE
CONSIDERED ASSESSING THETECHNICAL FEASIBILITY
Availability of land and site.
Availability of water,power,transportfacilities etc.
Availability of servicing facilities.
Coping with anti-pollution law.
Availability of work force as per requiredskill.
Availability of required raw material as perquantity & quality.
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THANK YOU.THANK YOU.