More on Project Appraisal

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.