CHAPTER 4

Project Appraisal

After going through this chapter, you should be able to

Identify various techniques of project appraisal

Appreciate the difference between traditional and modern techniques

Understand the importance of discounting of cash flows under modern techniques

Appreciate the differences and commonalities in the modern techniques

Oversee the computation of IRR

Appreciate the limitations of IRR/BCR/NPV

Understand the modified PBP and modified IRR

Appreciate examples of some projects and project management practice

Key Terms: Appraisal techniques, Cash flows, Discounting, Payback Period, NPV, Benefit Cost Ratio, IRR, Modified Payback period, Modified IRR, Cost of Capital

Having formulated the project proposal ...

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