Project Management

SUMMARY: The primary objective of any project is to earn reasonable returns for the investment made. The project manager must examine the financial feasibility of the project when selecting it for implementation. In this process, the project manager first estimates the total cost of the project and then identifies various means for financing the project. Share capital, term loans, debenture capital, and deferred credit are some of the means for financing a project. Then the project manager identifies the working capital needs of the project and the means for financing these needs. The project manager considers the time value of money while evaluating the financial aspects of a project idea. The future value of a single cash flow, future value of an annuity, present value of a single cash flow, and present value of an annuity are the important concepts discussed in time value of money.