This document outlines tasks for a project specialist assigned to a new and complex project in Ethiopia. It asks the specialist to 1) use tools to help stakeholders understand an unfamiliar project idea and its causes and effects, 2) explain how project analysis dimensions relate using a hypothetical example, 3) discuss the differences between economic and financial analysis, 4) compare discounted measures of project worth from an investment perspective, and 5) calculate the net present value of a sample project using a 10% discount rate to determine if it should be accepted.

1. PROJECT ASSIGNMENT
1. Assume you are assigned as a project specialist for a complex project that is new to
Ethiopia. If the stakeholders have no idea about the project idea and cannot trace the
cause and effect relationship as envisioned. What can you do? What tools would you
use?
2. Explain the interrelationship of project analysis dimensions and facets by taking one
hypothetical example.
3. Discuss the departure points of economic analysis from financial analysis.
4. Compare and contrast the discounted measures of project worth from investment
project point of view.
5. If the cost of capital (discount rate) is 10%, calculate NPV and make decision whether
the project should be accepted.
Year Cash flow
0 Birr (1,000,000)
1 200,000
2 200,000
3 300,000
4 300,000
5 350,000