Chapter 6

Investment Appraisal

Abstract

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

Keywords

Cost/benefit analysis; Discounted cash flow; Internal rate of return; Investment appraisal; Net present value; Return on investment
The investment appraisal, which is a part of the business case, will, if properly structured, ...

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