GeES 4016 - Project Appraisal and Financial Analysis Quiz
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GeES 4016 - Project Appraisal and Financial Analysis Quiz

Created by
@Born+Again

Questions and Answers

What do sunk costs refer to?

Costs incurred before appraisal and are irrecoverable

What does depreciation measure?

The loss of value of an asset arising from the passage of time

What are direct costs in the context of project operation?

Costs directly attributable to the production

What does the cost of production include?

<p>Raw materials, supplies, and components temporarily held in stock until usage</p> Signup and view all the answers

What is working capital?

<p>The financial requirement needed to finance the current asset of the balance sheet</p> Signup and view all the answers

What are examples of costs irrelevant for project decisions?

<p>Research and development expenditure or market research costs</p> Signup and view all the answers

What is the measure of the loss of value of an asset arising from the passage of time?

<p>$ ext{Depreciation}$</p> Signup and view all the answers

Which costs are directly attributable to the production?

<p>$ ext{Direct costs}$</p> Signup and view all the answers

What does pre-operative expenses include?

<p>Establishment expenses, rent, travel expenses, interest on borrowings.</p> Signup and view all the answers

What are miscellaneous fixed assets?

<p>Costs incurred for procuring office equipment, laboratory equipment, workshop equipment, vehicles, etc.</p> Signup and view all the answers

What is the purpose of conducting project appraisal?

<p>To reexamine every aspect of the project and modify the plan if necessary</p> Signup and view all the answers

What does financial analysis of projects involve?

<p>Analyzing costs related to project investment and operation</p> Signup and view all the answers

What does 'The Costs of a Project' refer to?

<p>Total outlay of all items associated with a project</p> Signup and view all the answers

What does 'Land and Site Development' costs include?

<p>Costs incurred for preparing the land for use</p> Signup and view all the answers

Which component is considered the most significant in project cost?

<p>Plant and machinery</p> Signup and view all the answers

What is the focus of environmental analysis in financial project appraisal?

<p>Analyzing the environmental impact of the project</p> Signup and view all the answers

What is the purpose of conducting project appraisal?

<p>To reexamine every aspect of the project</p> Signup and view all the answers

What type of information is collected during financial analysis of projects?

<p>Both revenue (benefit) and cost information</p> Signup and view all the answers

What does the total costs of a project include?

<p>The total outlay of all items associated with a project</p> Signup and view all the answers

Which component of a project's cost is considered the most significant?

<p>Cost of plant and machinery</p> Signup and view all the answers

What is included in the costs relevant to the initial investment of a project?

<p>Estimation of costs related to investment and operational costs</p> Signup and view all the answers

What is the benefit of conducting appraisal during project planning?

<p>To uncover unnoticed factors at the detailed planning stage</p> Signup and view all the answers

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