Appraisal methods in mutually exclusive development projects: A pragmtic analysis of alterntive technique

Appraisal techniques utilisations in mutually exclusive development project alternatives and their analysis arefundamental, and an inevitable process particularly in the planning, design and implementation of the developmentprojects. At the same time, it’s provided and promote for decision-making on development projects acceptance orrejection. The study aim is to investigate the appraisal methods in mutually exclusive development projects, identify whenthese methods cease to be appropriate for and the alternative techniques to adopt in such circumstance. Observation andpurposive sampling was used to collect information for two development projects (prefabricating company and rockcrushing company). A pragmatic illustration/analysis which utilise the spread sheets and other relevant functions in theMicrosoft excel software packages were used in the analysis, as well as to sustain and achieve the state purpose of thestudy. The findings reveal that the most adopted appraisal methods are: the NPV; IRR; and BCR; and that these methodsuse in mutually development project alternatives may cease to be appropriate where there are resources budget constraints.Further, the findings reveal that the technique that should be practiced under this circumstance is the “Capital Rationing”approach.The study reflection is to provide and promote a more understandings, knowledge and best practice todevelopment projects investors, practitioners, government, decision makers and agencies in the management of mutuallyexclusive development projects alternatives in the social, political, environmental and economic system. Further, it shouldpromote the awareness to relevant stakeholders that the benefits in undertaken more than a development project in thecircumstance of resources constraints was what should not be allowed to be diminished in their goals and objective foreconomic growth and development of a country or countries