Project appraisal is the process of assessing, in a structured way, the case for proceeding with a project or proposal, or the project's viability.
It often involves comparing various options, using
economic appraisal
Economic appraisal is a type of decision method applied to a project, programme or policy that takes into account a wide range of costs and benefits, denominated in monetary terms or for which a monetary equivalent can be estimated. Economic appra ...
or some other
decision analysis Decision analysis (DA) is the discipline comprising the philosophy, methodology, and professional practice necessary to address important decisions in a formal manner. Decision analysis includes many procedures, methods, and tools for identifying, ...
technique.
The entire project should be objectively appraised for the same feasibility study should be taken in its principal dimensions, technical, economic, financial, social and so far to establish the justification of the project or project appraisal is the process of judging whether the project is profitable or not to client or it is a process of detailed examination of several aspects of a given project before recommending of some projects.
Process
* Initial assessments
* Define problem and long-list
* Consult and short-list
* Evaluate alternatives
* Compare and select project appraisal.
Types of appraisal
* Technical appraisal
* Project appraisal
* Legal appraisal
* Environment appraisal
* Commercial and marketing appraisal
* Financial/economic appraisal
* Organizational or management appraisal
** Cost-benefit analysis
* Economic appraisal
[Kohli, K. N (1993). Economic analysis of investment projects: a practical approach. Oxford University Press.]
** Cost-effectiveness analysis
** Scoring and weighting.
See also
*
Feasibility study
A feasibility study is an assessment of the practicality of a project or system. A feasibility study aims to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats pr ...
References
Project management
Evaluation methods