Worksheet: Technology Appraisal and Project Cash Flow Planning

The requirement for appraising technology and project input factors is to collect information on

• Technical and technological resources used in the project

• Land-use planning and plans

• Production norms of project products

• All of the above are correct

To select appropriate technology, the appraiser must consider

• Future technology trends

• All of the above are correct

• Requirements of raw materials and impacts on ecology and environment

• Socio-economic conditions and the economy’s capacity to absorb technology

Necessary utilities can only be determined

• After selecting the location and technology equipment of the project

• Before selecting the location and technology equipment of the project

• Not related to location and technology equipment selection

• All of the above are correct

One of the contents of technical appraisal is

• Appraising technology equipment and project location

• All of the above are correct

• Appraising environmental impacts of the project

• Appraising raw materials and input utilities

Data on livestock and forestry raw materials are collected from

• Local authorities

• Livestock associations

• The Ministry of Agriculture

• All of the above are correct

When appraising project input materials, the appraiser must consider

• Raw material quality

• All of the above are correct

• Raw material sources and supply capacity

• Raw material prices

The objective of preparing intermediate calculation tables in the process of project cash flow planning is to

• Establish the project’s cash flow

• Estimate the project’s working capital

• Assess the project’s debt repayment ability

• Calculate annual income tax

Consider the following items: i/ Project preparation costs; ii/ Workers’ wages during production; iii/ Depreciation expenses; iv/ Cash inflows from sales; v/ Project construction costs. Which of these items are NOT recorded in the project’s cash inflows and outflows

• i, iii

• i, ii, iii, v

• ii, iii, v

• iii, iv, v

The timing of project cash flows is

• Beginning of the period

• End of the period

• Any time during the period

• All of the above are incorrect

Why should the project cash flow be divided at the completion of construction

• To facilitate the identification of annual cash inflows and outflows

• To separate investment cash flow and operating cash flow

• Both A and B are correct

• Both A and B are incorrect