PROJECT MANAGEMENT
&
ENTREPRENEURSHIP
KHU-702
UNIT-4
, Content – Unit IV
Project Financing:
• Project cost estimation & working capital requirements,
sources of funds, capital budgeting, Risk & uncertainty in
project evaluation, preparation of projected financial
statements viz. Projected balance sheet, projected
income statement, projected funds & cash flow
statements, Preparation of detailed project report,
Project finance.
, Financial Feasibility
⚫ Financial feasibility is the process of identifying the
overall investment outlay, determining expected rate
of returns and evaluating project financially. Financial
feasibility is crucial for any organization as:
⚫ It influences the firm’s growth in long term.
⚫ It affects risk of the firm into consideration.
⚫ It involves huge quantum of funds generally.
⚫ A wrong decision with regard to investment of huge
sum of funds may prove fatal for an existing firm.
, Financial Feasibility
⚫ A careful analysis of cash outflows and inflows is
essential before applying any capital budgeting
technique.
⚫ Capital budgeting is the process of identifying,
evaluating and selecting a project that requires large
sums of funds and generates long-term benefits in
future.
&
ENTREPRENEURSHIP
KHU-702
UNIT-4
, Content – Unit IV
Project Financing:
• Project cost estimation & working capital requirements,
sources of funds, capital budgeting, Risk & uncertainty in
project evaluation, preparation of projected financial
statements viz. Projected balance sheet, projected
income statement, projected funds & cash flow
statements, Preparation of detailed project report,
Project finance.
, Financial Feasibility
⚫ Financial feasibility is the process of identifying the
overall investment outlay, determining expected rate
of returns and evaluating project financially. Financial
feasibility is crucial for any organization as:
⚫ It influences the firm’s growth in long term.
⚫ It affects risk of the firm into consideration.
⚫ It involves huge quantum of funds generally.
⚫ A wrong decision with regard to investment of huge
sum of funds may prove fatal for an existing firm.
, Financial Feasibility
⚫ A careful analysis of cash outflows and inflows is
essential before applying any capital budgeting
technique.
⚫ Capital budgeting is the process of identifying,
evaluating and selecting a project that requires large
sums of funds and generates long-term benefits in
future.
