Step 1: Understanding the Concept:
A project cycle represents the structured, step-by-step process of planning, executing, and evaluating a developmental project (such as a farm irrigation or watershed project), classically outlined by J. Price Gittinger.
Step 2: Detailed Explanation:
Let us follow the logical chronological sequence of the phases in a project cycle:
1. Formulation (C): The project is designed, and technical, physical, and financial details are prepared.
2. Appraisal (E): A comprehensive review of the project is conducted by specialists to evaluate its feasibility before allocating funds.
3. Implementation (B): The project is launched, and physical construction or operations begin.
4. Monitoring (A): Ongoing supervision is conducted during the implementation phase to ensure project activities align with plans.
5. Evaluation (D): A systematic post-completion analysis is performed to measure actual outcomes and economic benefits.
Thus, the correct sequence is C (Formulation) $\rightarrow$ E (Appraisal) $\rightarrow$ B (Implementation) $\rightarrow$ A (Monitoring) $\rightarrow$ D (Evaluation).
Step 3: Final Answer:
The correct sequence is C, E, B, A, D, corresponding to Option (C).