This document presents a project appraisal report by Unwan Haider Rizvi, Neha Subhani, and Nazia Shafiq. It discusses the meaning of project appraisal, aspects of project appraisal including market appraisal, technical appraisal, and financial appraisal. Market appraisal examines demand, market share, imports/exports, elasticity, consumer behavior, and distribution channels. Technical appraisal reviews the technology, capacity, materials, location, personnel, and environmental impacts. Financial appraisal determines viability, debt servicing ability, return expectations, financing, break-even point, and cash flows. Limitations include uncertainty in forecasts and quantifying all risks.

1. PROJECT APPRAISAL
PRESENTED BY :
UNWAN HAIDER RIZVI
NEHA SUBHANI
NAZIA SHAFIQ
PRESENTED TO :
Dr. SANA BEG

2. CONTENT
 Project Appraisal
Definition
 Aspects of Project Appraisal
Market appraisal
Technical appraisal
Financial appraisal
 Limitations of project appraisal

3. MEANING
Project Appraisal is a consistent process
of reviewing a given project and
evaluating its content to approve or
reject this project, through analyzing the
problem or need to be addressed by the
project, generating solution options
(alternatives) for solving the problem,
selecting the most feasible
option,conducting a feasibility analysis
of that option,creating the solution
statement, and identifying all people and
organizations concerned with or affected
by the project and its expected
outcomes. It is an attempt to justify the
project through analysis.
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4. ASPECTS OF PROJECT
APPRAISAL
Market appraisal
Technical appraisal
Financial appraisal

5. MARKET APPRAISAL
It is one of the major areas of introducing of
any products in market . In that case ,these
things must be considered before launching
a product in the market.
What would be the aggregate demand of
the proposed product or service?
What would be the market share of the
project under appraisal ?
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6. MARKET APPRAISAL ISSUES
Past and current demand result
Imports and exports
Elasticity of demand
Consumer behaviour
Distribution channel
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7. TECHNICAL APPRAISAL
Technical Appraisal is the technical review to ascertain
that the project is. sound with respect to various
parameters such as technology, plant. capacity, raw
material availability, location, manpower availability,etc.
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8. 8
 Manufacturing process/ technology
 Technical arrangement
 Material input and utilities
 Product mix
 Plant capacity
 Location and site
 Machinery and equipments
 Environmental aspects
TECHNICAL APPRAISAL ASPECT

9. FINANCIAL APPRAISAL 9
 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

10.  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 risk
 It is a useful device where benefits can be quantified.
Project analysis is useful when there is a definite
starting and finising points.
LIMITATIONS