The cost of a project includes:
A. Cost & installation of plant and machinery

B. Cost of land

C. Sales revenue

D. Technical know-how cost

E. Survey of market
Choose the correct answer from the options given below:

Correct option is D

· A. Cost & installation of plant and machinery: The cost of plant and machinery is an integral part of the total project cost. It includes not only the purchase cost but also the cost of installation and commissioning of the equipment.
· B. Cost of land: The cost of land is also a key element in project costs, particularly for projects that require physical space, such as factories, offices, or other infrastructure development.
· D. Technical know-how cost: Technical know-how refers to the cost of acquiring the necessary knowledge, expertise, and technology to execute the project. This can involve training, licensing, and external consulting fees.
Information Booster:
· Cost & Installation of Plant and Machinery (A): This is a capital expenditure required to establish the physical production capacity of the project. It involves purchasing machines and installing them in the facility, including transportation, labor costs for installation, and other related expenses.
· Cost of Land (B): Land acquisition is often one of the largest components in project costs, especially for real estate, manufacturing, and infrastructure development. It involves both the purchase price of the land and costs associated with making it suitable for the intended purpose, such as clearing, leveling, and legal costs.
· Technical Know-how Cost (D): In many projects, technical know-how is essential to ensure successful project execution. This can include the cost of acquiring patents, licenses, proprietary technologies, or hiring technical experts to guide the implementation of specialized processes.
Additional Knowledge (Incorrect Options):
· C. Sales Revenue: Sales revenue is not part of the cost of a project. Rather, it is the income generated from selling the products or services produced by the project. Cost refers to the expenses incurred during project setup and execution, not income or profits.
· E. Survey of Market: Market surveys are typically considered part of the planning and research costs, but they are not typically included in the capital costs of a project. The survey may help inform decisions but does not directly contribute to the cost of implementing the project.