Chapter 20

Financial Appraisal of Irrigation Projects


The development of new projects, or investment under remedial measures and modernization of existing irrigation projects, requires an economic appraisal to investigate the additional income or benefits to the farmers and nation due to implementation. Analyses are also useful to analyze the returns from the project to justify investments. They are usually done in economic values, which are defined as the amount by which the return of a project or the cost involved in it changes the national income. In the present chapter, various terms of the financial appraisal will be discussed using real-world examples. This chapter includes the analysis of the net present value, internal rate of return, ...

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