The above quantitative data should be collected for several years in the past so as to constitute historical series. 4.5.9. Qualitative Information: The qualitative information, which may be required for market analysis, is: Location information-Transport and communication facilities, water and power facilities, nearness to the market, etc. Possibilities of continued supply of inputs. Attitude of customers. Climatic characteristics. Methods of distribution-market and non-market Government policies: (a) Economic Development objectives.
(b) Health and safety standards.
(c) Investment/International policy.
(d) Taxation policy.
(e) Export policy.
(f) Monetary policy.
(g) Labor policy.
(h) Others, if any
4.6. Economic Appraisal In economic appraisal, the project is looked at from the national or social point of view and the economic cash flow is constructed on the basis of "true or real prices", commonly known as accounting or shadow prices. Economic analysis of a project aims at determining whether that project is consistent with overall national and sector- wise objectives. Whether the investment proposed is the best means of achieving the intended objectives. It involves a systematic evaluation of a range of options for achieving the intended objectives. Allocating resources to a sector or specific purposes reduce the resources available for other sectors and purposes. Therefore, it is essential that the allocation of investment resources be efficient among sectors. Economic appraisal is the primary means of determining whether a proposed investment is worthwhile. It should determine whether a project is acceptable and, if it is, whether it is the best alternative. Economic appraisal should cover both quantifiable and non-quantifiable benefits (where applicable). Such benefits are described ad-seriatim. 4.6.1. Quantifiable Benefits: Following are the quantifiable benefits of economic appraisal: (a) Economic Rate of Return (ERR), (b) Bruno Ratio/ Domestic Resource Cost, (c) Contribution of Gross Domestic Product, and