Appraisal of the project is generally done based on

Correct option is A

Project appraisal is conducted before the implementation of a project to assess its feasibility. At this stage, only estimated or proposed costs and proposed returns are available for analysis. Actual costs and returns are known only after project completion and are used for evaluation, not appraisal. Therefore, project appraisal is generally done based on proposed costs and proposed returns.
Information booster: Project appraisal helps in determining economic viability, financial feasibility, and risk involved in a project. It includes techniques like benefit–cost ratio, net present value, and internal rate of return. Proper appraisal supports investment decision-making by farmers and entrepreneurs. Banks and financial institutions rely heavily on project appraisal reports before sanctioning loans.
Why other options are incorrect: (b) Actual costs and returns are used for post-project evaluation, not appraisal. (c) Proposed costs and actual returns cannot be used together because actual returns are not available initially. (d) Actual cost and proposed returns do not provide a realistic basis for appraisal.