This note covers some important concepts and methods which are normally used for project appraisal. Concepts and methods covered include (1) budgeting 'model' situation, (2) incremental concept, (3) current or constant prices, (4) direct and indirect impacts of a project, (5) acquisition and opportunity costs, (6) initial investment and terminal values, (7) time horizon, (8) time value of money, (9) computation for compounding and discounting , (10) computation for net present value and internal rate of return, and (11) sensitivity concept.