Introduction to Project Management

Project Definition

• A project is a temporary endeavor undertaken to create a unique product, service, or result.
• Projects are defined by their outcomes and have a specific start and end date.

Project Manager's Role

• The primary responsibility of a project manager is to plan, organize, and manage resources to achieve the project's objectives within the defined budget and timeframe.

Levels of Projects

• The Association for Project Management acknowledges four levels of projects:
  • Level 1: Routine, low complexity, short duration, and low budget.
  • Level 2: More complex, with a moderate budget and longer duration.
  • Level 3: Complex, with a high budget and longer duration requiring specialized expertise.
  • Level 4: Extremely complex, with a very high budget and long duration, involving multiple stakeholders and high risk level.

Project Types

• Program: A collection of inter-related projects that work towards a common strategic goal.
• Portfolio: A collection of projects and programs that align with the organization's strategic objectives.

Project Complexity

• Projects involving complex technologies or requiring collaboration with multiple teams are generally considered more complex.
• For example, designing experiments for a new analgesic drug is less complex than organizing multimedia resources at a teachers’ training college.

Project Objectives

• Clear articulation of project objectives helps to streamline project activities, ensure alignment with the organization's goals, and facilitate stakeholder communication.

SWOT Analysis

• SWOT analysis is a strategic planning tool that identifies internal organizational strengths and weaknesses, and external opportunities and threats.
• It helps prioritize projects that align with the organization's strengths and capitalize on external opportunities.

Project Life Cycle

• The initial stage of the project life cycle is project identification and selection.

Sources of Project Ideas

• Internal Sources: Ideas generated within the organization, such as from employees, departments, or management.
• External Sources: Ideas sourced from external sources such as government agencies, research institutions, or industry experts.

Project Identification and Selection

• This process involves identifying potential projects, evaluating their feasibility, and selecting projects that align with the organization's strategic objectives.

Participatory Analysis

• Participatory analysis involves engaging stakeholders throughout the project planning process, ensuring their perspectives are considered and fostering ownership.

Programs and Projects

• A project can be a component of a program, contributing to the overall strategic goal of the program.

SWOT Analysis Purpose

• The main purpose of conducting a SWOT analysis is to identify opportunities, threats, strengths, and weaknesses that can inform project planning and selection.

Goal-Oriented Planning

• Organizations should first identify their strategic goals and objectives before developing plans to achieve them.

National Policies and Programs

• Programs often align with broader national policies, aiming to achieve specific development objectives.

Fostering Creativity

• Organizations need to create a conducive environment to foster creativity, such as by encouraging innovation, promoting collaboration, and providing resources for employees to explore new ideas.

Planning Components

• Strategic Planning: Defines the organization's long-term goals and overall direction.
• Tactical Planning: Develops action plans to achieve the strategic goals, typically covering a timeframe of one to two years.
• Operational Planning: Focuses on the day-to-day operations of the organization, outlining specific tasks and procedures.

Project Idea Sources and Project Types

• Internal Sources: Can relate to various types of projects including operational, program, and portfolio projects.
• External Sources: Often related to projects with a broader scope, such as infrastructure development or research initiatives.

Entrepreneurship Characteristics

• Entrepreneurship is characterized by innovation, risk-taking, and a strong desire to create new products or services.

Program vs. Project

• A project is a temporary endeavor, while a program is a collection of inter-related projects that aim to achieve a broader strategic goal.

Project Prioritization

• Identifying the target group helps prioritize projects that address the specific needs of that group.

Realistic Planning

• Realistic planning involves identifying necessary resources, considering potential risks, and establishing attainable timelines. It requires a clear understanding of the project's scope and complexity.

Fortuitous Circumstances

• Fortuitous circumstances are unexpected events that can impact project planning, such as changes in policies, funding availability, or the emergence of new technologies.

Project effectiveness

• Projects should fit into the organization's overall strategic framework, aligning with its goals and objectives for maximum effectiveness.

Development Led Industrialization (DLI)

• DLI is a development strategy focused on promoting industrialization as the driving force for economic growth. It involves investing in industries and infrastructure to create jobs and generate economic activity.

Fostering a Creative Climate

• Fostering a creative and innovative climate encourages employees to generate new ideas, challenge existing norms, and explore new solutions.

Project Planning Questions

• Key questions that need to be addressed in project planning include:
  • What are the project objectives?
  • What are the expected outcomes?
  • What are the potential risks and challenges?
  • What resources are required?
  • What is the project timeline?

Stand-Alone Projects

• Stand-alone projects can exist independently, but they often have links to other projects, programs, or the organization's overall strategic goals.

Sound Development Plans

• A fundamental requirement for sound development plans is a comprehensive assessment of the needs and context of the target group. This includes understanding the specific challenges, opportunities, and resources available.
• A thorough understanding of the target group needs is essential for developing relevant and effective solutions.

Project Activities Success

• Successful accomplishment of project activities requires clear communication, coordination among team members, and effective management of resources.

Effective Planning

• Good planning outweighs a good project because it sets the foundation for success by ensuring clear objectives, efficient resource allocation, and a well-defined roadmap for implementation.

Project Activities

• Project activities are not necessarily repetitive; they are unique and tailored to the specific goals of the project.

Project Primary Feature

• A primary feature of a project its temporary nature with a defined start and end date.

Project Management Elements

• Project Scope: Defines the boundaries of the project, outlining the deliverables and activities that will be included.
• Project Schedule: establishes a timeline for completing project activities.
• Project Budget: Defines the financial resources allocated to the project.

Project Management

• Projects are typically managed by a project manager, who is responsible for leading the team, overseeing project activities, and ensuring the project meets its objectives on time and within budget.

Types of Planning

• Strategic planning, tactical planning, and operational planning.

Tactical Planning Timeframe

• Tactical planning typically covers a timeframe of one to two years, setting shorter-term objectives to achieve the long-term strategic goals.

Development Plan Purpose

• The main purpose of a development plan is to outline a clear roadmap for achieving development objectives. It typically includes:
  • Identifying the target group for development interventions.
  • Defining the desired outcomes of development interventions.
  • Outlining the strategies and activities that will be undertaken to achieve those outcomes.
  • Identifying the resources required to implement the plan.
  • Establishing a timeline for implementing the plan.

Planning Levels

• The three levels of planning are strategic, tactical, and operational.

Planning Types

• Strategic Plans: Long-term, broad-based plans that define the organization's overall direction.
• Tactical Plans: Mid-term plans that translate the strategic goals into actionable steps.
• Operational Plans: Short-term plans that focus on day-to-day activities and procedures.

Team Dynamics

• Team dynamics are crucial for project success. Effective teams are characterized by:
  • Clear communication.
  • Shared goals and objectives.
  • Respectful collaboration.
  • Open and honest feedback.

Project Planning Definition

• Project planning is the process of defining project objectives, determining the required resources, outlining the activities to be undertaken, and establishing a timeline for completion. It involves anticipating potential risks and developing mitigation strategies.

Strategic Planning Timeframe

• Strategic planning typically covers a timeframe of five to ten years and sets the foundation for long-term success.

Development Plan Characteristics

• Development plans should be:
  • User-friendly: Accessible and understandable to the intended audience.
  • Comprehensive: Covering all aspects of the development intervention.
  • Suitable for multiple formats: Able to be presented in various formats, such as reports, presentations, or online platforms.

Operational Plans Characteristics

• Operational plans are detailed and specific, focusing on the day-to-day activities and procedures required to achieve the project's objectives.

Project Manager Responsibilities

• The project manager is responsible for leading the project team, ensuring project activities are completed on time and within budget, managing risks and challenges, and reporting progress to stakeholders.

Project Beneficiaries

• Stakeholders who are likely to benefit from the project's successful implementation, including the target group, government agencies, funding organizations, and the community at large.

Problem Tree Analysis

• Problem tree analysis is a tool that helps identify the root causes of a problem and develop solutions. It involves:
  • Defining the problem.
  • Identifying the underlying causes of the problem.
  • Identifying the effects of the problem.
  • Developing solutions to address the root causes of the problem.

Group Categorization

• Group categorization is essential for identifying the target group for a project and understanding the diverse needs and interests of different communities.

Initial Group Selection

• The initial group selected for analysis when consensus on the target group is hard to reach is the "most affected group."

Group Descriptions

• Target Group: The group of people who will directly benefit from the project.
• Most Affected Group: The group that will experience the most significant impact from the project's outcomes.
• Supporters: Groups that are likely to support the project because it aligns with their interests.
• Potential Opponents: Groups that could potentially resist the project because it may negatively impact their interests.
• Indirectly Affected: Groups that will experience a less direct impact from the project.

Detailed Group Analysis

• Detailed group analysis considers the specific needs, priorities, and potential concerns of different groups. It helps develop project interventions that are tailored to the specific context of the target group and address their concerns.

Problem Tree Cause and Effect Relationships

• Cause and effect relationships are essential in problem tree analysis because they help identify the underlying issues contributing to the problem. This is crucial for developing effective solutions that address the root causes rather than just the symptoms.

Problem Tree Expansion

• Problem tree analysis expands both horizontally and vertically as new causes and effects are identified. It helps to develop a comprehensive understanding of the problem and identify opportunities for intervention.

Interest Groups

• The key interest groups for problem analysis include:
  • Government Agencies: Responsible for implementing policies and regulations related to the project.
  • Local Communities: Directly affected by the project and its implementation.
  • Private Sector: Businesses and individuals who may be involved in the project.
  • Civil Society Organizations: Non-governmental organizations advocating for specific causes.
  • Academic Institutions: Research institutions that provide technical expertise and knowledge related to the project.

Objective Tree

• The objective tree outlines the objectives that need to be achieved to solve the problem identified in the problem tree analysis.

Objective Tree Creation

• Restating negative conditions in the problem tree as positive conditions. For example, a problem in the problem tree could be "lack of access to clean water." This would be converted to "improved access to clean water" in the objective tree.

Objective Tree Causal Relationships

• It's important to recognize that the objectives in the objective tree are interconnected and interdependent. Addressing one objective can contribute to achieving others.

Project vs. Regular Business Activities

• Projects are temporary endeavors with a defined scope and a specific end date, while regular business activities are ongoing processes that are part of the organization's routine operations.

Project Management Balance

• Project management must balance three interconnected elements:
  • Scope: The project's deliverables and activities.
  • Time: The project's timeline.
  • Cost: The financial resources allocated to the project.

Alternative Tree Analysis

• Alternative tree analysis explores different potential solutions to the problem identified in the problem tree. It helps to:
  • Identify various intervention strategies.
  • Evaluate the feasibility, effectiveness, and cost-effectiveness of different solutions.
  • Select the most appropriate solution for addressing the problem.

Project Definition (Product or Service)

• A project is defined as a temporary endeavor undertaken to create a unique product or service.

Pre-Feasibility Study

• A pre-feasibility study is an initial assessment focusing on the technical feasibility, financial viability, and market potential of a project. It helps to explore the project's potential by examining factors such as:
  • The project's scope and objectives.
  • The available resources.
  • The project's potential risks and challenges.
  • The project's estimated costs and benefits.

Preparation and Analysis Appraisal Phase

• This phase focuses on preparing and analyzing the project proposal to determine its feasibility, assess its potential impact, and develop a detailed plan for implementation.

Project Types and Features

• Infrastructure Projects: Focus on developing infrastructure, such as roads, bridges, airports, and power plants.
• Industrial Projects: Focus on establishing or expanding industrial facilities.
• Social Development Projects: Focus on improving the quality of life for individuals and communities.
• Research and Development Projects: Focus on developing new technologies and solutions.

Project Features

• Unique: Each project is a unique undertaking with specific goals and deliverables.
• Temporary: Projects have a defined start and end date, unlike ongoing business activities.
• Defined Scope: The project's scope is clearly defined, outlining the activities and deliverables to be included.
• Specific Goals: Projects have clearly defined outcomes and measurable objectives.

Logical Framework

• The logical framework includes a 4x4 matrix for planning projects which typically includes the following components:
  • Narrative: A brief description of the project.
  • Outputs: The tangible products or services that the project will deliver.
  • Outcomes: The changes that the project aims to achieve.
  • Goals: The broader strategic goals the project aligns with.

Pre-Feasibility Study Components

• Market Analysis: Evaluates the demand for the project's outputs, the competition, and the pricing strategy.
• Technical Analysis: Assesses whether the project's technology is feasible and available.
• Financial Analysis: Examines the financial viability of the project, including costs, revenue, and profitability.
• Social Analysis: Evaluates the project's impact on the target community.
• Environmental Analysis: Assesses the project's impact on the environment.

Project Management Approach

• Effective project management involves maintaining an overall vision while adjusting tactics as necessary.
• It requires flexibility and adaptability to respond to changing conditions and challenges.

Project Completion Requirements

• Effective communication and collaboration among team members are essential for successful project completion.
• It ensures everyone is aware of their responsibilities, can coordinate their efforts, and can address challenges collectively.

Support Study Focus

• A support study focuses on specific technical aspects or areas that require further investigation, providing more detailed information for the feasibility study.

Feasibility Studies

• Feasibility studies require more detailed analysis and in-depth investigation than pre-feasibility studies.

Project Change Impact

• Projects often introduce change, which can be positive or negative. Individuals may resist change due to fear of the unknown, loss of control, or disruption to their routines.

Project Features and Definitions

• Scope: Outlines the project's activities and deliverables.
• Time: Establishes a timeframe for completing the project.
• Cost: Defines the financial resources allocated to the project.
• Quality: Sets standards for the project's outputs and deliverables.
• Risk: Identifies and assesses potential risks to the project's success.

Pre-Feasibility Study Justification

• A pre-feasibility study is conducted to determine whether it is worthwhile to invest further time and resources to develop a feasibility study.

Distant Teams Challenges

• Managing projects involving distant teams presents several challenges:
  • Time zone differences: Can make communication and collaboration difficult.
  • Cultural differences: May lead to misunderstandings and communication barriers.
  • Lack of face-to-face interaction: Can limit team cohesion and create difficulties in establishing trust.

Pre-Feasibility vs. Feasibility Studies

• The major difference between pre-feasibility and feasibility studies is the level of detail required.
• Pre-feasibility studies are more exploratory and preliminary while feasibility studies involve more in-depth analysis, detailed research, and rigorous evaluation.

Study Types and Purposes

• Pre-Feasibility Study: Examines the project's potential, evaluating its technical feasibility, financial viability, and market potential.
• Feasibility Study: Conducts a more detailed investigation into the project's viability, analyzing its technical, financial, social, and environmental aspects.

Project Success

• A project can be considered successful if it:
  • Meets the quality standards.
  • Stays within the defined budget.
  • Completes within the defined timeline.
  • Achieves the desired outcomes.

Program Plan Purpose

• The primary purpose of a program plan is to outline the overall strategy and implementation approach for a program. It typically includes a description of the program's goals, objectives, activities, budget, timeline, and monitoring and evaluation plan.

Overcoming Resistance to Change

• Project managers should be aware of management techniques to overcome resistance to change.
• They can use strategies such as communication, participation, training, and incentives to address concerns and build support for the project.

Pre-Feasibility Study Components

• A pre-feasibility study typically includes:
  • Market analysis: Evaluating the demand for the project's outputs.
  • Technical analysis: Assessing whether the project's technology is feasible and available.
  • Financial analysis: Examining the financial viability of the project.
  • Social analysis: Evaluating the project's impact on the target community.

Project Uniqueness

• All projects are unique, each with its specific goals, challenges, and stakeholders.

Stakeholder Participation

• All project stakeholders are not expected to have the same level of participation in the project.
• The level of participation should be determined based on the stakeholder's role, interests, and influence.

Support Studies

• Support studies are not always necessary for all investment projects. They are only required when specific technical aspects or areas require further investigation.

Project Manager Role

• The project manager acts as a leader, facilitator, and coordinator within the project team. They are responsible for:
  • Planning and organizing project activities.
  • Managing resources.
  • Monitoring progress.
  • Communicating with stakeholders.
  • Addressing challenges.
  • Ensuring the project meets its objectives.

Project Budget Contents

• A project budget should include all estimated costs associated with the project, including:
  • Personnel costs: Salaries and benefits for project team members.
  • Materials costs: The cost of materials, equipment, and supplies.
  • Travel costs: The cost of travel for project team members.
  • Training costs: The cost of training for project team members.
  • Contingency funds: An allowance for unexpected expenses.
  • Indirect costs: The cost of supporting the project, such as administrative costs, utilities, and rent.

Logical Framework Assumptions

• Assumptions are statements of fact that are assumed to be true but have not been definitively proven.
• They are included in the logical framework to identify potential risks to the project if the assumptions prove to be incorrect.

Project Plan Adjustments

• The contingency plan allows for adjustments and planning for unexpected project issues that may arise due to unforeseen events or changes in circumstances. It helps to mitigate risks and ensure project success.

Pre-Feasibility and Feasibility Study Phase

• This phase is critical for gathering information and conducting analysis to determine the project's feasibility before committing significant resources.

Project Plan Components

• Project Charter: Defines the project's scope, objectives, and stakeholders.
• Project Scope Statement: Outlines the project's deliverables and activities.
• Project Schedule: Sets a timeline for completing project activities.
• Project Budget: Defines the financial resources allocated to the project.
• Risk Management Plan: Identifies and assesses potential risks to the project's success.
• Communication Plan: Outlines how information will be shared among project stakeholders.
• Quality Management Plan: Defines the standards for the project's outputs and deliverables.
• Stakeholder Management Plan: Identifies and manages the expectations of project stakeholders.

Project Plan Content

• The main content in a project plan includes:
  • Project objectives.
  • Project scope.
  • Project schedule.
  • Project budget.
  • Risk management plan.
  • Communication plan.
  • Quality management plan.
  • Stakeholder management plan.

Gantt Chart

• A Gantt chart provides a visual representation of the project's timeline and tasks.
• It helps to track project progress, identify potential delays, and ensure that project activities are completed on schedule.

Project Success Requirement

• A successful project requires clear objectives, effective planning, efficient resource management, and strong leadership.

Project Risk Identification

• Identifying project risks should be a continuous process throughout the project by regularly assessing potential risks and developing mitigation strategies.

Project Terms

• Contingency Plan: A backup plan for dealing with unexpected events or changes in circumstances.
• Risk Assessment: The process of identifying and evaluating potential risks to the project's success.
• Risk Mitigation: Taking steps to reduce the likelihood or impact of potential risks.
• Stakeholder Management: The process of identifying and engaging with project stakeholders, managing their expectations, and ensuring their needs are addressed.

Project Timeline Identification

• The project timeline should clearly identify:
  • The project start and end dates.
  • The duration of each project phase.
  • The key milestones and deliverables.

Project Plan Development

• Previous experiences and best practices should be incorporated during project plan development to learn from past mistakes and improve the effectiveness of the project plan.

Communication Strategy Outcome

• The intended outcome of a communication strategy in project management is to:
  • Ensure effective communication among project stakeholders.
  • Promote collaboration and teamwork.
  • Minimize misunderstandings and conflicts.
  • Keep stakeholders informed of project progress.

Program Plan Role

• The program plan serves as a guideline and roadmap for the duration of the program ensuring that all projects within the program are aligned with the overall program objectives and are implemented effectively.

Contingency Plans Role

• Contingency plans play a crucial role in project planning by addressing potential risks and uncertainties.
• They provide a framework for responding to unforeseen events and ensuring project success despite challenges.

Feasibility Study Purpose

• One of the key purposes of a feasibility study is to determine whether the project is technically feasible, financially viable, and socially and environmentally acceptable.

Market Analysis

• Market analysis includes:
  • Evaluating the demand for the proposed产品或服务.
  • Assessing the competition.
  • Identifying potential marketing channels.
  • Determining the project's pricing strategy.

Feasibility Study Element

• The first element of a feasibility study is defining the project's objectives and scope which sets the foundation for the subsequent analysis and evaluation.

Necessity Model

• The necessity model initiates projects that are required to maintain an existing system or process.
• It is typically used to address urgent needs or to prevent disruptions in ongoing operations.

Market Analysis Factors

• Factors considered in market analysis include:
  • Market size and growth potential
  • Target market demographics
  • Competition
  • Pricing strategy
  • Marketing channels
  • Regulations and policies

Public Project Technology

• The preferred technology in government-sponsored projects is often appropriate technology which is:
  • Locally adaptable: Can be easily modified and maintained within the local context.
  • Environmentally sustainable: Minimizes environmental impact and promotes resource conservation.
  • Affordable: Can be implemented within the available budget.

Organizational Analysis

• Organizational analysis assesses the organizational aspects related to project implementation including:
  • The strengths and weaknesses of the organization.
  • The organization's capacity to execute the project.
  • The availability of resources and expertise within the organization.

Project Ranking Approach

• The benefit-cost ratio (BCR) model is used when multiple projects must be ranked based on benefits.
• It compares the benefits of each project to its costs to determine which projects provide the greatest return on investment.

Project Preparation and Selection in Developing Countries

• Projects in developing countries often lack sufficient preparation and selection due to various factors such as:
  • Limited resources and technical expertise.
  • Weak institutional capacity.
  • Poor coordination and communication among stakeholders.

Technical Analysis Focus

• The main focus of technical analysis is to assess:
  • The feasibility of the project's technology.
  • The availability of resources and expertise.
  • The potential operational challenges.

Huge Investment Projects

• Projects involving huge investment resources require conducting a feasibility study before selection to thoroughly evaluate the project's viability and minimize the risk of financial loss.

Feasibility Study Elements

• A feasibility study typically includes:
  • Market analysis: Evaluating the demand for the project's outputs.
  • Technical analysis: Assessing是否 project's technology is feasible.
  • Financial analysis: Examining the financial viability of the project.
  • Social analysis: Evaluating the project's impact on the target community.
  • Environmental analysis: Assessing the project's impact on the environment.

Market Analysis Determination

• Market analysis should determine:
  • The demand for the proposed product or service.
  • The potential market size and growth.
  • The competitive landscape.
  • The pricing strategy.
  • The marketing channels.
  • The regulatory environment.

Project Selection Weaknesses in Developing Countries

• Poor project selection in developing countries can be attributed to factors such as:
  • Limited technical expertise and resources.
  • Weak governance structures.
  • Lack of robust project evaluation frameworks.
  • Insufficient stakeholder engagement.

Financial Analysis in Project Appraisal

• The main objective of financial analysis in project appraisal is to determine the project's financial viability and profitability. It examines:
  • Project costs.
  • Project revenues.
  • Profit margins.
  • Return on investment.
  • Payback period.

Economic Analysis

• Economic analysis takes into account both financial costs and social costs when evaluating projects.
• It considers factors such as:
  • Opportunity costs: The value of resources used for the project that could have been used for other purposes.
  • Environmental costs: The cost of environmental damage caused by the project.
  • Social costs: The cost of negative social impacts, such as displacement or loss of cultural heritage.

Shadow Prices

• Shadow prices are artificial prices used in economic analysis to account for the implicit value of goods and services that are not traded in the market.
• For example, if a project involves using land that is not currently producing anything, a shadow price is assigned to that land to represent its potential value.

Social Analysis Favored Groups

• Social analysis prioritizes projects that benefit marginalized groups such as:
  • Low-income communities
  • Ethnic minorities
  • People with disabilities
  • Women
  • Children.

Analysis Types and Primary Focus

• Financial Analysis: Focuses on the financial viability of the project.
• Economic Analysis: Considers the financial and social costs of the project.
• Social Analysis: Evaluates the project's impact on the target community.
• Environmental Analysis: Examines the project's environmental impacts.

Social Analysis Explicit Consideration

• Social analysis explicitly considers the project's impact on the target community.
• It examines factors such as:
  • Potential displacement or relocation.
  • Changes in livelihoods.
  • Access to resources.
  • Social equity and inclusion.

Financial Viability Determination

• A detailed financial analysis must be prepared to determine a project's financial viability.
• It examines the project's costs, revenues, profitability, cash flow, and return on investment to confirm whether it has the potential to generate sufficient returns.

Environmental Analysis Assessment

• Environmental analysis assesses the impact of the project on the environment and its habitat.
• It examines factors such as:
  • Air quality.
  • Water quality.
  • Biodiversity.
  • Waste generation.
  • Climate change impacts.

Financial Analysis Process

• The financial analysis process includes:
  • Estimating project costs.
  • Projecting revenues.
  • Calculating profitability and return on investment.
  • Analyzing cash flow.
  • Assessing financial risks.

Financial Analysis Compilation

• Compiling detailed financial information, such as:
  • Cost estimates.
  • Revenue projections.
  • Profitability analysis.
  • Cash flow statements.
  • Financial risk assessments.
• The financial analysis process helps to identify potential financial challenges and develop mitigation strategies to ensure the project's long-term sustainability.

Environmental Analysis Impact Areas

• Environmental analysis assesses the impact of a project on human beings, water, and air, which are crucial for human health and well-being.

Tax Treatment in Economic Analysis

• Taxes are often treated as a cost in economic analysis.
• Taxes on profits and revenues are considered reductions in the project's profitability and return on investment, while taxes on inputs and resources are considered increases in project costs.
• Economic analysis aims to account for the full range of costs and benefits associated with the project, including the impact of taxes, to provide a more comprehensive assessment of its economic viability.