Conceptual Elements & Evaluation Preparativ

Synthesis – “Chapter 1: Conceptual elements & evaluation preparative”

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Synthesis – “Chapter 1: Conceptual elements & evaluation preparative”

A project is the searching of intelligent solutions for solving a specific problem, more applied for human necessity. In this case, an investment project, consist on a plan with the porpoise of provide a service or a product (useful for a small group or the society), it needs diverse resources like money, workforce, etc. The evaluation of an investment project have the object of determine economic profitability and social return.

The investment project are needed for covering human necessities with services or products. The principal objectives of a project is to earn money or giving something to the community.

The project evaluation is the most important part of the study, it’s the base to make the final decision of the project. The evaluation covers the economic, political, social and cultural reality of the entity or place of study.

Preparation process and project evaluation:

* Parts of project evaluation:

1. Goal settings.

2. Analysis

* Market analysis

* Technical-Operative analysis

* Financial analysis

* Socio-Economic analysis

1. Conclusions

2. Final decision

* Project evaluation as a process:

1. Idea Identification: It’s elaborated from existing information (investments, costs and income), common judgment and experience.

2. Preproject: Consist on an exhaustive market investigation detailing the technology needed and determining the costs and the economic profitability.

3. Defined project: It’s the final step where is decided if the project will be made or not.

* Introduction and development framework:

1. Introduction: A brief review of the development and the uses of the product.

2. Development framework: It involves all the information of the conditions, ideas, objectives, persons or entities and products of the project.

* Market Study: It’s the first formal investigation which consist on determine the situation of the problem to solve (level of necessity, price analysis and marketing study).

* Technical study:

1. Determination of an optimal size.

2.