What is Financial Analysis?
Financial analysis tries to ascertain whether the planned project will be financially feasible in the sense of being able to meet the saddle of servicing debt and whether the planned project will convince the return expectations of those who provide the capital. The feature that have to be looked into while conditioning financial appraisal are the following:
- Investment pay out and cost of project
- Means of financing
- Cost of capital
- Projected profitability
- Break-even point
- Cash flow of the project
- Investment worth while ness judged in terms of a variety of standards of merit
- Projected financial position
- Level of risk
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