Chapter 6

Investment Appraisal

Abstract

This chapter describes the investment appraisal, which is part of the business case. It includes the calculations for return on investment (ROI) and net present value (NPV) using the discounted cash flow (DCF) method. Also discussed are payback, internal rate of return (IRR), and cost/benefit analysis. The chapter contains a discount factor table and worked examples.

Keywords

Investment appraisal; return on investment; net present value; discounted cash flow; internal rate of return; cost/benefit analysis

Chapter Outline

The investment appraisal, which is part of the business case, will, ...

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