Investment Appraisal
Table of contents: Page no. 1. Introduction 1 2. Investment appraisal 2 3. Payback method 3 4. Present value (PV), future value (FV) and net present value (NPV) 5 5. Project 1 6 6. Comparing projects 11 7. Conclusion 12 8. References 13 9. Bibliography 14
Introduction:
In 21st century business is much more developed and competitive as well with the presence of so many competitors in the market. Companies those who are competing in the market, always look for the ways to bring changes and development. To establish the presence of the company into new market or developing new product, top level management always need to deal with the different proposals. Company has some limited money available to invest, lenders or investors may offer a limited amount to invest into a new project. But the big decision top level management must have to make which proposal or project company need to support. Financial management accounting helps the companies to perform well in the field of management, finance and accounting. As we know to become successful in business there is no alternatives of perfect planning and correct decision making. Investment appraisal is the most popular and common tool to assess a certain projects worthiness. It always tells which project is a good idea to invest and which is not. The next part of this report we are going to discuss about the investment appraisal and different techniques which are vastly used in management and finance aimed to guide companies to achieve their goal.
Investment appraisal:
When a company wish to involve in a project company must check whether the project is profitable for the company or not? Because any investment decision must deals with risk as it is associated with future. In long term or midterm investment company must need to assess the risk and benefits. Investment appraisal gives a clear
Introduction:
In 21st century business is much more developed and competitive as well with the presence of so many competitors in the market. Companies those who are competing in the market, always look for the ways to bring changes and development. To establish the presence of the company into new market or developing new product, top level management always need to deal with the different proposals. Company has some limited money available to invest, lenders or investors may offer a limited amount to invest into a new project. But the big decision top level management must have to make which proposal or project company need to support. Financial management accounting helps the companies to perform well in the field of management, finance and accounting. As we know to become successful in business there is no alternatives of perfect planning and correct decision making. Investment appraisal is the most popular and common tool to assess a certain projects worthiness. It always tells which project is a good idea to invest and which is not. The next part of this report we are going to discuss about the investment appraisal and different techniques which are vastly used in management and finance aimed to guide companies to achieve their goal.
Investment appraisal:
When a company wish to involve in a project company must check whether the project is profitable for the company or not? Because any investment decision must deals with risk as it is associated with future. In long term or midterm investment company must need to assess the risk and benefits. Investment appraisal gives a clear
References: 1. Damodaran, A. (2002).Investment Valuation: tools and techniques for determining the value of any asset 2nd edition. New York: John Willis & sons inc. 2. Jones, R., Pendle bury, M. (2000)public sector accounting 5th edition. Essex: Pearson Education Limited. 3. Lumby, S. (1988).investment appraisal and financial decisions 3rd edition. Berkshire: Van Nostrand Reinhold int. Co. Bibliography: 1. Damodaran, A. (2002).Investment Valuation: tools and techniques for determining the value of any asset 2nd edition. New York: John Willis & sons inc. 2. Economy watch(2009), available from http://www.economywatch.com [accessed on 7th April, 2010] 3. Jones, R., Pendle bury, M. (2000)public sector accounting 5th edition. Essex: Pearson Education Limited. 4. Lumby, S. (1988).investment appraisal and financial decisions 3rd edition. Berkshire: Van Nostrand Reinhold int. Co.