An appraisal is the assessment of alternative courses of action with a view to establishing which action should be taken. Appraisals may be financial, economic, or technical in emphasis.
Capital budgeting, also known as capital investment appraisal or investment appraisal, is the process by which an organization evaluates different investment projects to determine which is likely to provide the highest financial return.
Cost-Benefit Analysis is a technique used in capital budgeting that evaluates the estimated costs against the expected benefits of a proposed investment.
Economic appraisal is a method of capital budgeting that uses discounted cash flow techniques to determine the preferred investment by discounting the expected annual economic costs and benefits over the project's life. This method is particularly used for assessing governmental or quasi-governmental projects such as road, railway, and port developments.
Economic benefits represent the gains realized from an improvement in facilities or services provided by a government or local authority, usually expressed in financial terms.
Economic costs represent the projected costs revealed by an economic appraisal, excluding transfer payments within the economy such as taxes and subsidies.
A feasibility study is an analytical process used to determine the viability of a project, venture, or business activity. It assesses various aspects, including financial, technical, legal, and operational factors, to evaluate the potential for successful completion and a satisfactory return on investment.
