Project appraisal: Simply speaking project appraisal means the assessment of a project. Project appraisal is made for both proposed and execute projects. It is the structured process of assessing the viability of a project or proposal. Project appraisal is a cost and benefits analysis of different aspects of proposed projects with an objective to adjust its viability. It involves calculating the feasibility of the project before committing resources to it. It often involves making an assessment between various options and this done by making use of any decision technique or economic evaluation method.
It should make clear:
- the vision – what this project is supposed to achieve
- costs – the investment required
- benefits – the returns on that investment – which may or may not be financial
- alternatives – other ways of achieving the same objectives
- project management – how it will be managed if it goes ahead
Project appraisal means the analysis of technical organizational, economic, and financial activities of a project. It is an attempt to justify the project through analysis, which is a way to determine project feasibility and cost-effectiveness.