Assumption
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Assumption


Increasing awareness about the use of scare resources and the returns obtainable from it makes the issue more important. Financial and economic appraisal is an important component of any project.    Financial analysis is used to describe the commercial viability of the project and shows its strength from financial angle.  The concept of economic analysis can be considered as an extension of the financial analysis.  In economic analysis the concern is on the developmental effect on the society, economy as a whole as against the financial analysis that bothers the interest of the specific entity.  In the absence of past trends and its proper records it is necessary to make certain assumptions based on the reality of situations for assessing the true viability of this project.  The horizon is important for calculation of benefit and cost of a project.    Various kinds of expenditure items like establishment cost and  capital cost etc. have to be looked into prior  to  preparing cash-flow statement. Even though the project seems to be quite viable from commercial point of view, economic benefits likely to be accrued are also quite high. As a social responsibility we intend to share part of our revenue to charity.

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