Evaluationl English 1

7/28/2019 Evaluationl English 1

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An Evaluation of Agricultural Project

(317 AEC)

Course Outline

1. Types of Analysis

2. Standards of Comparison

3. Measures of Profitability4. Measures of Size

5. Efficiency Measures

6. Financial Measures7. Enterprise Analysis

8. Discounting factor

9. Compounding factor


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Course Objectives:

1. Explain the time value of money and its use

2. Illustrate the process of compounding

3. Demonstrate the process of discounting

4. Discuss the payback period, simple rate of return,

Benefit cost ratio, net present value and internal rate

of return

5. Show how to apply these measures6. Explain how income taxes, inflation, and risk affect

investment analysis


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7- To show how farm business analysis

contributes to the control function ofmanagement

8- To suggest standards of comparison to use

9- To outline a procedure for locating economic or

financial problem areas10- To review measures that can be used to

analyze solvency, liquidity, and profitability

11- To identify measures of business size

12- To illustrate the concept of economicefficiency


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Chapter (1)

Feasibility Study of Financial Projects

Projects are the cutting edge of development

Project concept:

Projectis the whole complex of activities inthe undertaking that uses resources to gain

benefits.

Alsoprojectis defined as a set or group ofactivities which include using specific amount of

resources to achieve specific goals.


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The agricultural projectis an investment

activity where we expenditure the financialresources to create capital assets that

produce benefits over extended periods of

time in agricultural. Theprojectis just a sacrifice by direct

resources today to get benefits over an

extend periods of time


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Examples

1. constructing houses, factories, shoppingmalls, developing military weaponssystems, new ships

2. launching satellite systems3. developing and implementing new

computer systems

4. Planning concert, football games, orbasketball introducing new products intomarket.


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Elements of Project Management

1. Project team

2. Individuals from different departments within

company

3. Matrix organization

4. Team structure with members from different

functional areas depending on skills needed

5. Project manager6. Leader of project team

7. Project Planning


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Types of projects:

There are two major types:

1) Products (goods) projects. 2)Services projects.

1) Products (goods) projects: Represent theunits of production of:

-Agricultural projects. -

Animal products. -Extractive products. -

Manufactured products.


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2)The services project: can be classified to:

Commercial services projects: which includes(banks, hotel, tourism companies, private health

and education),

Non commercial projects: include freeeducation and health, social, religious and

cultural services also irrigation, drainage,

electricity generation, defense and security.

The projects differ in their types, goals and sizes


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They are classified to:

1) Public projects or private projects or both(Mixed).

2) Agricultural, industrial and services

projects. 3) Small, medium and large size projects.

4) Projects that aim to profit and others that

not. 5) Intensive labor projects and intensive

capital projects


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Project Management Process

1. Project planning

2. Project scheduling

3. Project control

4. Project team


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The importance of feasibility study of projects:

1) It is a practical and logical way to construct aproject

2) It is a group of complementary studies for

different aspects related to the project withoutignorance of any aspect.

3) The feasibility study is a way for gettingbenefits from scarce resources.

4) It encourages the team work group. 5) It helps in the detection of available

opportunities.


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6) It helps in the recovery of the problemswhich may arise during project operation.

7) It helps in getting loans and licenses.

8) Helps in prediction for extended periodsof time.

The economical and financial evaluation isdone at the end of the feasibility study wherethe actual evaluation is done after the project

implementation, if performance is good, theactual evaluation & the forecast evaluationare equal.


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Definition of cost

Is anything that reduces an objective.

- For a farmer: The major objective is to maximizethe amount of satisfaction for his family and

increase his income over time. - For the governmental cooperation: The major

objective is to maximize net income and makingthe highest profit possible and reduce risks.

- For a society as general: major objective is toincrease their national income and this can beachieved by Income distribution, increasing thenumber of productive job opportunities.


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Components of the costs for

Agricultural Projects

1. Physical goods.

2. Labor.

3. Land.

4. Contingency allowance.5. Taxes.

6. Debt services.

Or include Irrigation cannels, fertilizers andpesticides, Labor, Land, Taxes, Debt services.


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Definition of benefits:

Is anything that contributes to an

objective or is anything that increases

the national income.Conclusion:

Anything that reduces the nationalincome is a cost, which led to increase

the benefit.


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Components of benefits for

Agricultural Projects:

1. Increased value of production.

2. Quality improvement.

3. Change in time of sale.4. Change in product, throughout grading

and processing, which lead to increase in

sales of production.5. Change in location of sale.


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Thank You

Evaluationl English 1

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