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CONCEPTS OF PROJECT, ASPECTS OF PROJECT FORMULATION & APPRAISAL & MODEL BANKABLE PROJECTS
What is a 'project' in the context of rural development financing?
A project is a planned set of interrelated activities designed to achieve specific objectives within a defined time frame, budget, and resource allocation, aimed at creating productive assets or generating income.
What is the primary objective of project appraisal in rural banking?
To assess viability and repayment capacity of the project.
What are the key phases of a project life cycle in rural banking?
The key phases are identification, formulation/preparation, appraisal, approval/sanction, implementation, and post-completion evaluation (ex-post evaluation).
What is the payback period in project appraisal?
Time required to recover the initial investment from net cash inflows.
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