The program evaluates the project using 3 different techniques:-

• Discounted cash flow solution rate.
• The return on capital achieved by the project, both for each year and over the life of the project.
• The positive cash flow over the life of the project, compared with the cash flow resulting from the same investment being placed in an alternative financial investment environment.

The speed at which the program calculates and presents the appraisal data, facilitates otherwise time consuming "What if" scenarios.
The program does not provide for the recording of detailed information relating to the project's investment requirements, income and costs. Data from such calculations should be summarised into the categories listed below for entry onto the relevant form of the Project Appraisal Program:-

• Fixed asset investment
• Working capital investment
• Sales income
• Variable costs

From this data the program evaluates the project as indicated above, taking into account local taxation rates allowances and methods of payment together with estimates relating to inflation and In House rates and method of depreciation.

The program is written in Microsoft Visual Basic Version 4.0. for 32 bit Windows development, it therefore requires Microsoft Windows 95 or better

To install the program, double click Setup.exe in the directory to which you unzipped the file, or choose Start - Run - type in the file path of the folder into which you unzipped the file, then type \Setup.exe.

If during installation you get the warning that your system has a later version of a file, retain the later version.

The program is viewed best at screen resolution 800 by 600 or higher. Below 800 by 600 some Help Topics may not display correctly.

An example project file, named Example.inv is included. To open this file choose Menu - File - Open. The examples in the help file are based upon the data contained in this example project. If you wish to make alterations to the data in this example project file , to observe the changes that occur, before doing so, it is recommended that you create a copy of the file with a different name, using Menu - File - Save As.

It is my first effort at a program of some substance. I am self taught using manuals and text books. Please let me have your comments about the program content and the nature of any technical problems you may encounter.

Download Project Appraisal.

Disclaimer
Despite the technical nature of many management techniques, business management is still mainly an art. It relies on the managers knowledge of the business and the environment in which it operates. Len Bainbridge does not accept any responsibility for any business actions or decisions resulting from the application of the business management techniques and the related examples, that are detailed in this web site.

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Reproduced with Permission
Copyright Len Bainbridge (Unregistered)