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Unformatted text preview: Financial evaluation of a project is analysis of a project for checking whether project is profitable or not before taking project in hand. We also review the project by investigating its cost, risk and return. If we have lots of alternatives projects, then we select best project on the basis of financial evaluation. In simple words, we uses following tools for financial evaluating of a project. 1. Evaluate the Cost of Project First thing which we see before take the any project from financial point of view is to evaluate the cost of project. Whether cost of project is good according to its quality or not? 2. Time Value of Investment in Money Time value of investment in money is the importance factor which affects the decisions of financial evaluation of any capital investment because we check the profitability of project according to time. Today earned one rupee from any project is better than one rupee earned because we check the profitability of project according to time....
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- Fall '10
- Valuation, PAYBACK PERIOD