Question

    BCR, IRR, Sensitivity, Scenario and Risk analysis are part of:

    A Viability Tests Correct Answer Incorrect Answer
    B Economic Test Correct Answer Incorrect Answer
    C Social/distributive Appraisal Correct Answer Incorrect Answer
    D Capacity and competence test of promotor Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The primary aim of financial analysis is to determine whether the project satisfies the investment criteria of generating acceptable level of profitability. The project should be able to service the debt and ensure expected returns to the investor. The important aspects which are examined while conducting financial appraisal are investment outlay, means of financing, projected financial statements, viability and profitability, break-even point analysis, sensitivity analysis and risk analysis.

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