Question

Project appraisal is a/an

• A. Export analysis
• B. Expert analysis
• C. Profitability analysis
• D. None of these

Hint:

Think of project appraisal as a test: “Will this project give profit or loss?”

Answer 1

The Correct Option is C

Step 1: Meaning of project appraisal.
Project appraisal means evaluating a project from various angles before starting it.
It is done to determine whether the project is worth investing in.
Step 2: Role of profitability analysis.
The main focus of project appraisal is profitability.
It compares expected benefits with expected costs to judge viability.
Step 3: Option analysis.
- (A) Export analysis: Wrong, not related to project feasibility.
- (B) Expert analysis: Wrong, appraisal is not limited to expert opinions.
- (C) Profitability analysis: Correct, because project appraisal mainly evaluates profits vs. costs.
- (D) None of these: Incorrect, since (C) is right.
Step 4: Conclusion.
Project appraisal is essentially a profitability analysis.