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Economic analysis, in contrast to financial analysis, defines the real resource flows induced by an investment rather than the investment's monetary effects. (JP Gittinger 1982 Economic Analysis of Agricultural Projects)
Financial analysis thus relates to the performance of a project from the viewpoint of a stakeholder - eg, a farmer or institution, and looks at investment, maintenance and operation costs and cash revenues after taxes, duties etc.
Economic analysis defines the impact of the project on the regional or national economy. It does not consider transfers between economic actors, such as taxes, duties etc. It values traded outputs/costs at their economic level (often defined by their world price net of import or export costs). Non-traded outputs/costs (ie, where price is not determined by "the market") can be valued on the basis of "willingness to pay" or shadow price.
Both economic and financial analysis should look at the with project situation compared to the without project (and not before and after) - ie, they take account of changes that would have occurred in the absence of the project investment.
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What is the difference between project economic and financial analysis?
Economic analysis, in contrast to financial analysis, defines the real resource flows induced by an investment rather than the investment's monetary effects. (JP Gittinger 1982 Economic Analysis of Agricultural Projects) Financial analysis thus relates to the performance of a project from the viewpoint of a stakeholder - eg, a farmer or institution, and looks at investment, maintenance and operation costs and cash revenues after taxes, duties etc. Economic analysis defines the impact of the project on the regional or national economy. It does not consider transfers between economic actors, such as taxes, duties etc. It values traded outputs/costs at their economic level (often defined by their world price net of import or export costs). Non-traded outputs/costs (ie, where price is not determined by "the market") can be valued on the basis of "willingness to pay" or shadow price. Both economic and financial analysis should look at the with project situation compared to the without project (and not before and after) - ie, they take account of changes that would have occurred in the absence of the project investment.
What is better vertical or horizontal analysis?
No one is better or worse these are both methods for analysis which are somewhat different to each other as in vertical analysis comparison is made between different heads of accounts while in horizontal analysis comparison is made with competitors financial statements.
How do interest rates compare between different financial institutions?
Interest rates can vary between different financial institutions based on factors such as the type of account, the institution's policies, and the current economic conditions. It's important to compare rates from multiple institutions to find the best option for your financial goals.
What is financial performance analysis?
Financial performance analysis is the method of correctly establishing the relationship between the profit and loss account and the things on the balance sheet. The information is used to identify the financial weaknesses and strengths of a firm.
What is the difference between economic development and financial development?
Economic development, generally speaking, is a process of change that is focused on the betterment of the community, state, and/or nation and financial development is a part of of economic development important part.. it is more on financial.
What are the merits and demerits of ratio analysis?
Financial ratio analysis is a useful tool for users of financial statement. It has following advantages:AdvantagesIt simplifies the financial statements.It helps in comparing companies of different size with each other.It helps in trend analysis which involves comparing a single company over a period.It highlights important information in simple form quickly. A user can judge a company by just looking at few numbers instead of reading the whole financial statements.LimitationsDespite usefulness, financial ratio analysis has some disadvantages. Some key demerits of financial ratio analysis are: Different companies operate in different industries each having different environmental conditions such as regulation, market structure, etc. Such factors are so significant that a comparison of two companies from different industries might be misleading.Financial accounting information is affected by estimates and assumptions. Accounting standards allow different accounting policies, which impairs comparability and hence ratio analysis is less useful in such situations.Ratio analysis explains relationships between past information while users are more concerned about current and future information.
Should ecological analysis be separated for technical analysis?
Yes, ecological analysis and technical analysis serve different purposes and use different methods. Ecological analysis focuses on studying the interactions between living organisms and their environment, while technical analysis is used in financial markets to forecast future price movements based on historical data. It is important to keep these analyses separate to maintain clarity and accuracy in their respective fields.
What is the difference between a financial crisis and an economic crisis and which of both affects the other most?
A financial crisis is when wall street and the banks are failing. An economic crisis is when there is high unemployment or a recession.
What is the Difference between value analysis and value chain analysis?
no different it's the same
What are the major purposeof input output analysis?
Input-output analysis is a method used to study the interdependencies between different sectors of the economy. Its major purposes include understanding how changes in one sector affect others, identifying key sectors for economic development, and assessing the overall economic impact of policy changes or external shocks. This analysis can help governments and businesses make informed decisions to promote economic growth and stability.
What would most likely be the subject of an essay written by Marxist literary critic on Cather my Antonia?
A study of the chapter divisions of the novel and how many in which Ántonia appearsan analysis of the economic oppertunities availableto and ...etc apx:))a comparative study of the economic class distinction between city girls and farm girlsA study of the chapter divisions of the novel and how many in which Ántonia appearsAn analysis of the economic opportunities available to, and economic challenges confronting, Ántonia and JimAn analysis of the economic opportunities available to, and economic challenges confronting, Ántonia and JimAn analysis of how Lena Lingard bucked the odds to become an economic successa comparative study of the economic distinction between city girls and farm girlsD * apeexxxAn analysis of the economic opportunities available to, and economic challenges confronting, Ántonia and JimA comparative study of the economic class distinction between city girls and farm girls.
How can one effectively utilize the PPP conversion factor in financial analysis and international comparisons?
The PPP conversion factor is used in financial analysis and international comparisons to adjust for differences in currency values and cost of living between countries. By applying this factor, one can make more accurate comparisons of economic indicators such as GDP or income levels across different countries. This helps in understanding the true purchasing power of a currency and facilitates better decision-making in global business and investment strategies.
