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| Project Assessment |
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 Chapter I-
| Strategic Planning & Capital Budgeting |
| 1.1 |
Overview of Strategic Planning and Capital Budgeting |
| 1.2 |
Generation and Screening of project ideas |
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| 1.6.1 |
Generation of Ideas |
| 1.6.2 |
Monitoring the Environment |
| 1.6.3 |
Corporate Appraisal |
| 1.6.4 |
Profit Potential of Industries; Porter Model |
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Scouting For Project Ideas |
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Preliminary Screening |
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Project Rating Index |
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Sources of Positive Net Present Value |
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On being An Entrepreneur |
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Summary |
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- Chapter II
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| Project Appraisal |
| 2.1 |
Introduction |
| 2.2 |
Technical Appraisal-. selection of process/technology,
scale of operations, raw materials ,technical know-how,
collaboration agreements, Product Mix, selection and
procurement of Plant and machinery, Plant Layout,
Location of projects, Project Scheduling, |
| 2.3 |
Commercial Appraisal-demand, demand forecasting
Techniques, other aspects to be considered in
Demand forecasting of a product,
industry Demand vs. firm Demand |
| 2.4 |
Economic Appraisal |
| 2.5 |
Financial Appraisal |
| 2.6 |
Management Appraisal |
| 2.7 |
Social Cost Benefit Analysis: objectives,
approaches to Social Cost Benefit Analysis e.g.
UNIDO ,Shadow prices, The Little-Mirriees approach,
LM’s shadow price, economic Rate of Return,
effective rate of protection, domestic resource cost, |
| 2.8 |
Project Risk Analysis |
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| 2.8.1 |
Risk vs. .Uncertainty |
| 2.8.2 |
Kinds of project risks |
| 2.8.3 |
Techniques of Risk Analysis e.g. payback,
risk adjusted discount rate, Certainty
equivalent approach, Probability Distribution,
Decision Tree approach, Applied utility Theory,
Sensitivity Analysis |
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Summary |
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- Chapter III
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| Project Cost Estimation |
| 3.1 |
Cost of the Project |
| 3.2 |
Components of Capital Cost of a project-
Land, Land development, Building,
Plant and Machinery, Electricals, Transport and
erection charges, Know- how/consultancy fees,
Miscellaneous assets, Preliminary and
preoperative charges, Provision for contingencies,
Margin money for working capital |
| 3.3 |
Order of Magnitude estimate |
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Summary |
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- Chapter IV
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| Financial Appraisal of projects |
| 4.1 |
Introduction |
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| 4.1.1 |
The concept of cash outflow Vs. Cash inflows |
| 4.1.2 |
Conversion of Incremental Accounting Profit to Cash Inflow for Project Evaluation: |
| 4.1.3 |
Traditional Techniques of Evaluation-payback, payback reciprocal, accounting rate of return |
| 4.1.4 |
Discounted Cash flow Methods-Net Present value,
Profitability Index, Internal Rate of return,
Break-Even Time and Financial Appraisal of Project for New Products |
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| 4.2 |
Cost of Capital |
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| 4.2.1 |
Cost of Debt |
| 4.2.2 |
Cost of preference shares |
| 4.2.3 |
Cost of ordinary or equity shares |
| 4.2.4 |
Cost of Reserves/Retained Earnings |
| 4.2.5 |
Overall cost of capital |
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| 4.3 |
Cost of Production and Profitability estimate |
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Summary |
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- Chapter V
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| Project Planning and Scheduling |
| 4.1 |
Introduction |
| 4.2 |
Project Scheduling |
| 4.3 |
Scheduling Techniques |
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| 4.3.1 |
. Net Work Based Scheduling |
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| 4.4 |
Computer Aided Project Management |
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| 4.4.1 |
Essential Requirements of Project Management Softwares |
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Summary |
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