The following points highlight the top seven investment appraisal techniques. The techniques are: 1. Payback Period Method 2. Accounting Rate of Return Method 3. Net Present Value Method 4. Internal Rate of Return Method 5. Profitability Index Method 6. Discounted Payback Period Method 7. Terminal Value Method. Technique # 1. Payback Period Method: The payback period is usually expressed in [...]
In addition to the financial aspects of the capital investment decision there are also many other areas which warrant attention such as: Technical: (a) The need for technical superiority. (b) Flexibility and adaptability. (c) Ease of maintenance. (d) Operational considerations, e.g., need to restrain/recruit personnel. (e) Servicing arrangements. (f) Manuals provided for operating and servicing. (g) Peripherals necessary for efficient [...]
The following points highlight the top seven investment appraisal techniques. The techniques are: 1. Payback Period Method 2. Accounting Rate of Return Method 3. Net Present Value Method 4. Internal Rate of Return Method 5. Profitability Index Method 6. Discounted Payback Period Method 7. Terminal Value Method. Technique # 1. Payback Period Method: The payback period is usually expressed in [...]