3.13 Capital investment appraisal
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Additional information |
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The calculation and use of cash flows in capital investment appraisal. |
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Payback and net present value (discounted cash flow) of a capital project. |
Payback and net present value of a capital project will include understanding relevant terminology: payback period, net present value, discount factor, cost of capital. Calculate:
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The benefits and limitations of the payback and net present value methods of capital investment appraisal. |
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The use of capital appraisal measures in the evaluation of projects. |
The evaluation of projects could include:
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