← Project Appraisal Level 2: Financial Appraisal and Loan Structuring

Investment appraisal: NPV, IRR, payback and break-even

Module 03 / 5 · 60 min

Judge whether the project as a whole creates value, separately from how the loan is structured, and how far sales can fall before it stops covering its costs.

In this module you will learn to

Build project (unlevered) cash flow and explain why interest is left out
Compute and interpret NPV, IRR and payback, and choose a defensible discount rate
Compute accounting and cash break-even and compare them with planned volume
Give a one-line verdict on whether a project is worth financing

Built on

Erudite Africa training module: Project Appraisal Level 2: Financial Appraisal and Loan Structuring (October 2026)
A commercial bank's Revised Credit Procedure Manual (2025), unnamed
NBE directives as listed in the lessons: FXD/01/2024, NBE/INT/13/2026, SBB/87/2024, SBB/88/2024, SBB/90/2024, CRB/02/2019, MCR/01/2020
Insurance Business Proclamation No. 746/2012
Erudite Africa: Ethiopian context for banking and finance training, 39 topics (2026)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.