Identification of Project

• The project appraisal report must identify the purpose of the project, its strengths in comparison to existing products or projects on the market or industry, what benefits the company will experience after launching the project and how much it will cost the company. Ultimately, the appraisal process must consider all aspects of the project to determine is worth to the company.
  
  

Financing the Project

• Part of the appraisal steps for a project is to evaluate the budget. The budgeting section must outline all costs associated with creating and launching the project, how the project will be financed and how much the project will cost in terms of existing company workforce. You must include any outsourced help in the overall costs. The finance section should also predict any profitability and income the company will experience after launching the project. These estimates are an important part for executives, who are appraising the project.
  
  

Industry and Market

• The need for the project or product is an essential part of the appraisal process. Executives may have no interest in financing a project that is not in demand by consumers or the targeted industry. The appraisal report must identify the target market and provide research and data about what consumers are looking for. A marketing strategy is necessary, so executives know how the project will be presented to the consumers.
  
  

Raw Materials and Manufacturing

• Raw materials, manufacturing processes and quality control must be part of the appraisal report if the company is planning on producing the project or product in question. If a third-party company will play a role in constructing the business, extensive research on manufacturers is essential. A list of approved manufacturers and third-party suppliers of raw materials must be present in the report, so executives can evaluate the quality of the third-party contributions.