A project deals with three dimensions i.e.. Innovation, Vision and Risk. So, it is something to be done in a viable framework. According to Encyclopedia of Management. "A project is an organized unit dedicated to the attainment of a goal´.

Characteristics of Project
Investment Pattern Expected Return Time Limit Location

Factors to be considered for Project Selection
Size of Investment Location Technology Equipments Marketing

Project Life Cycle
Pre- investment Phase Construction Phase Normalization Phase

Project Classification
1.Quantifiable v/s Non-Quantifiable Projects 2. Sectorial Projects Agriculture and Allied Sector, Irrigation and Power Sector, Industry and Mining Sector, Transport and Communication Sector, Social Services Sector 3. Techno-Economic Projects Factor Intensity Oriented, Causation Oriented, Magnitude Oriented

Project management
Project management is the discipline of planning, organizing and managing resources to bring about the successful completion of specific project goals and objectives. A project is a finite endeavor undertaken to create a unique product or service which brings about beneficial change or added value.

Phases of Project Management
1. Identification 2. Formulation 3. Appraisal 4. Selection 5. Implementation 6.Management

Project planning
Project planning is the most important aspect of project preparation, it is all about thinking deeply through a problem, examining all the logical paths and writing down in a proper logical sequence and time order, initially, the project scope is defined and the appropriate methods for completing the project are determined.

The planning of a project should centralize on: Optimizing the use of scarce resources. Optimization and better utilization of the existing resources. It should be within the budgetary provision of a financing institution. It should result in the desired benefits.

Important Factors for Project planning
Business strategy Competition Realistic Vision Involvement of people in creating the project plan Factual and brief project plan

Financial Analysis
The objective of financial analysis is to ascertain whether the proposed project will be financially viable in the sense of being able to meet the burden of servicing debt, and whether the proposed project will satisfy the return expectations of those who provide the capital.

While conducting a financial appraisal certain aspects has to be looked into like : Investment outlay and cost of project Means of financing Projected profitability Break-even point Cash flows of the project Investment worthiness judged in terms of various criteria of merit Projected financial position.

The commonly used methods for evaluating and ranking the financial investment proposals are as follows:1. Urgency Method 2. Pay-Back Period Method 3. Rate of Return Method 4. The Present Value Method

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