General introduction
What is an investment project appraisal? How does this work in businesses? To see the role of project appraisal we need to understand the nature of the investment project appraisal and the need for appraisal of the project in the enterprise.
What is an investment project?
An investment project is a document prepared by the investor, which presents a full and detailed description of the contents related to the implementation of the investment later in order to confirm the correctness of investment policy and efficiency of capital. Investment projects are documents that honestly reflect the results of specific research on all issues related to market, economic, technical and financial matters, which directly affect the operation and exploitation thereof. and the profitability of the investment.
What is an investment project appraisal?
Appraisal of an investment project is an objective, scientific and comprehensive study and analysis of all economic and technical contents of the project, in association with the natural environment and socio-economy. To invest and finance the project.
This is an independent process of evaluating the basic contents of the project, separate from the process of drafting the project. Project appraisal provides a solid foundation for effective investment. The conclusions drawn from the appraisal process are the basis for the issuance of investment decisions by competent units, establishments and agencies, permitting the investment or financing of the project.
The investment appraisal service of the company will help investors and enterprises to invest to overcome the subjective nature of the project developer and help to detect, add the The shortcomings in each analysis of the project. Project appraisal is an integral part of investment management, which provides a solid foundation for effective investment.