Economic project evaluation

This video deals with the economics of a project. It reveals how the financial justification of a project can be calculated and demonstrated. A number of economic parameters are introduced and defined. Time value of money is introduced. Categories of projects and their desired profitability are presented. The calculation of the economic parameters is based on the capital outlay and the project proceeds over the years. Cash flow and Operating Income are elements of these proceeds. The rationale behind applying a multiparameter approach is underpinned.