Project appraisal is a structural process through which management uses to determine through careful assessment the most viable project. From a well appraised project, great achievements can be achieved in case the project implementer applies the appropriate skills. …
..... 4 Discussion……………………………………………………………………………………… 6 Recommendation………………………………………………………………………………..9. Conclusion………………………………………………………………………………………10 Introduction Project appraisal is a structural process through which management uses to determine through careful assessment the most viable project. From a well appraised project, great achievements can be achieved in case the project implementer applies the appropriate skills. Appraisal is done through assessment of data through assumptions and methodologies used when preparing a project. For instance, it involves the work flow, proposed financing, an assessment of the projects managerial aspects, cost estimating, finance validity, and how the project will be a benefit to society through factors like employment. Project appraisal happens in various types depending on the kind of project being determined its viability. It therefore cover an analysis of techniques being used, managerial aspects of the firm, analysis social factors like income and employment, assesses the impact of financial judgments among other financial activities, determines how is the project viable in terms of economic undertakings. Project appraisal involves various discounted and undiscounted techniques. The undiscounted techniques include payback period, value added, capital-output ratio, an outlay of proceeds per unit, and average of the outlay of proceeds per unit. However, the discounted techniques may be listed as net present worth, benefit cost ratio, internal rate of return, net benefit investment ratio, sensitivity analysis; and earnings before interest tax depreciation and amortization CEEU, 2005).. According to Ian, David & James, whenever the management is making decision it has to involve the above project appraisal techniques. To illustrate more of these, from our class work, students were given an online simulation test. As per the tests, students were supposed to think of themselves being the chief executive of the doll industry of US. They were supposed to do simulation for a period of five years (from 2009 to 2014) and it is the result they get would be used to test their knowledge on various techniques of business appraisal. Activities Undertaken At the beginning of the project, the company had basic net revenue of 3.23. With the firm`s expansion aim, the net revenue was expected to increase. Consequently, the student had to decide on projects from the available data with an assumption that it was a representation of the real data gotten during the research over the doll industry. The data could have included the past number of buyers of the product or the data recorded from market testing and the information collected from competitors` websites. With their target being kids and their playing devices, the students had to keep on updating various products to enhance their marketability over that of their competitors. It was a call for more implementation of technological experiences into the products to move with the increasing innovation in the world. Thus, to win parents heart, the products were developed being future oriented especially with what every parent could have dreamt of his kids and for the kids is about their dream being put in toy. Taking the managerial role, students tried to change the various rates of interest of the production, licensing and retail parts of the project. What students noted in that project. They affected investment analysis tools, but they only affected other output from the project after making a decision of investing on a particular project. This means that, there are those basic ...
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“Project Appraisal Assignment Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.net/finance-accounting/88657-case-study.
The industry provides services such as maintenance, repairs and rehabilitation of existing structures. The industry comprises of three main sectors, which include building construction, heavy and civil engineering and specialty trade contractors (Whaples, 2006).
The specific project management situation in question occurs at Apple, Inc. This organization will be undergoing the development of new form of television. In advancing with this specific project one recognizes that in large part Apple’s organizational culture has remained highly stratified (Lashinksy 2012).
Taking this strategic move into account, the company is conducting an investment appraisal in order to evaluate which of the two options is more financially feasible. The company’s cost of capital is 12%. It is assumed, in the absence of information provided, that this is the weighted average cost of capital (WACC) for the company which is calculated with the help of the following formula.
To this end, the sum of the various payments made from 2013 to 2017 is deducted from $350,000 to give the value for each year. This results in the table below Year 0 1 2 3 4 5 Value 350,000 – 128,3000 = (221,700) 350,000 – 119,300 = (230700) 350,000 – 110,300 = (239700) 350,000 – 102, 300 = (247700) 350,000 – 105,300 = (244700) Subtracting the initial investment amount from the amount found on the spreadsheet, the NPV comes up as $1,022,968.69 - 450,050 = 572968.69 Rate of Return on Investment (ROI) Using the NPV to represent the summation of gains to be accrued for all investment years, ROI = (Gains - Investment costs) / (Investment costs) = (572968 – 450,050) / 450,050 = 0.27%
The growth stage is also evidenced by the existence of sufficient resources that will be enough for the organization to open up to new opportunities. Tyneside gravel organization is currently faced by three main decisions.
The appraisal revealed lack of formal project management procedure and documentation. Cost estimation details were not available, and no evidence of risk management was found. Formal project appraisal also does not seem to have been done, and the alignment of the project with the strategic goals of the company is suspect.
rios have been considered in such a manner that the valuation of the project can be made on the basis of aggressive, neutral and defensive approaches. The following sections cover all three scenarios and their assumptions as well.
The first scenario generates a positive Net
n important metric for measuring the performance of a company in terms of generating returns in the capital invested by the shareholders in the company (Baker and Powell, 2009, p.101). The Return on capital employed (ROCE) for the group increased to 11.2 % in 2014 which is an
In the case on HP, the need to develop a product applicable to elementary school pupils proves imminent and hence the need to have HP commit its resources ranging from employees to finances to the development of a product that suits these level of users.
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