basic_appraisal_investment_techniq.

Apr 10th, 2015
Studypool Tutor
Price: $30 USD

Tutor description

Word Count: 1163
Showing Page: 1/9
Basic Appraisal Investment TechniquesName:Class:Teacher:Date:Before any company commits to any high levels of capital spend, the company under normal circumstances has to undertake an investment appraisal. An investment appraisal consists of these two features:i) An estimate of any future costs as well as benefits over the given project's life.ii) An assessment of the level of expected returns which will be earned for the level of investment made is performed (Elmaghraby, 1990)If a given company's proposed capital project is evaluated, the cost as well as the benefits of that given project should be keenly evaluated over the company's foreseeable life. Hence, this is now the anticipated useful life of the non-current asset to be purchased, which will hence become several years. Thus from this the company will understand that the estimates of any future costs as well as benefits demand a long-term forecasting (Shrieves, 2001). Basic appraisal techniques include Return on Capital Employed and Payback. Nevertheless, there are other complex investment appraisal methods being applied in companies as well as governmental institutions. These include: 1. NPV or the Net Present Value2. IRR or the Internal rate of Return.Net present Value (NPV)Appraising the general impact of a given project using the DCF technique will cause one to involve discounting all significant flows of cash related to the given project back to their present value or also known as (PV). Th

Review from student

Studypool Student
" Totally impressed with results!! :-) "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1825 tutors are online

Other Documents

04/10/2015
04/10/2015
04/10/2015
04/10/2015

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors