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.