- Identification: - Careful scanning of the environment for investment opportunity and the ROI.
- Formulation: - Translation of idea into a concrete project, scrutiny and preparation of feasibility report.
- Appraisal: - Analysis and evaluation of market, technical, financial and economic variables, return on investment and break- even point.
- Selection: - Rational choice considering objectives and limitations.
- Implementation: - Expeditious completion within allocated resources.
- Management: - Operation of an enterprise with maximum of net present value, maximization of return. Increase in rate of return at low risk.
To summarize, it can be said that
- Project is a scheme for investing resources in an enterprise.
- It can be a massive scheme like a multipurpose river valley project or a venture with small investment.
- It provides complete details and analysis of technical, marketing and economic aspects.
- To an entrepreneur it opens up a programme for action, profitability and economic viability.
- A sound project will definitely contribute towards economic development.
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