1.6: Profiling a Project
Read this chapter, which gives an overview of how to create a snapshot of the project to create an outline of the project's tasks. Attempt the exercises at the end of each section.
- Watch this video, which covers how to evaluate a project's potential to be effective. Companies use certain methods to choose the right project and prepare a project feasibility report. In developing a project feasibility report, you have to consider whether the project is worthwhile by evaluating economic, financial, and technical factors. This lecture will go through the process of project identification, appraisal, and selection. You will learn how to calculate the net present value (NPV), internal rate of return (IRR), payback period, loan return capability, and so on. This will help you understand how to create an initial assessment of a project's viability.
Watch this video, which covers the financial appraisal of projects:
- estimation of the cost of the project and its timing;
- estimation of the likely revenues during each period;
- the cost of capital;
- the planning horizon of the project;
- the risk in the project as evidenced by the worst and best values of costs and revenues;
- benefit/cost ratio of discounted cash flows;
- debt service coverage ratio; and
- a company's reputation in terms of assets, liabilities, and record of previous repayments, etc.
This video demonstrates how to successfully create an initial assessment of a project's viability.