Question
Which of the following statement(s) is/are true?(Select the correct answer from the options below the statements) (1) It is important to focus only on quantitative matters when conducting a project appraisal (2) It is important to use only one project appraisal technique in order to avoid any confusion (3) It is important to consider both quantitative and qualitative matters when conducting project appraisal (3) only (1) only (2) only None of the above
Answer
4.2
(277 Votes)
Zara
Advanced · Tutor for 1 years
Answer
"3 (only)" is the correct answer.
Explanation
## Step 1: Understanding the questionThe question presents three statements relating to project appraisals. We are to determine which of these statements are true. ## Step 2: Evaluating each statementLet's evaluate each statement one by one.- Statement (1): 'It is important to focus only on quantitative matters when conducting a project appraisal'. This statement is not true. In a project appraisal, both quantitative (numerical or statistical) and qualitative (descriptive or subjective) information should be analyzed. Quantitative aspects might include cost estimates, cash flow forecasts, and financial indicators, while qualitative components might include elements of risk assessment and considerations of economic, environmental, and social impacts.- Statement (2): 'It is important to use only one project appraisal technique in order to avoid any confusion'. This statement is also not accurate. In reality, it often serves a project well to use several complementary techniques for evaluation to gain a more comprehensive insight into its potential success or failure. Different methods can offer different perspectives or focus on different aspects of the project, reducing the likelihood of overlooking any important considerations.- Statement (3): 'It is important to consider both quantitative and qualitative matters when conducting project appraisal'. This statement is true, as explained in the evaluation of statement (1). Effective project appraisals encompass both multiple criteria and methods to ensure a comprehensive analysis of the project.