15.4 Project appraisal techniques Flashcards
1
Q
What might be included in the initial capital cost of a project?
A
- purchase of non-current assets
- net book value of existing assets
- investment in working capital
- capitalised research and development expenditure
2
Q
What are the two basic approaches to project appraisal?
A
1 Non-discounting methods
2 Discounted cash flow methods
3
Q
What are two non-discounting methods of project appraisal?
A
1 Payback method
2 Accounting rate of return
4
Q
What are three discounted methods of project appraisal?
A
1 Net present value
2 Internal rate of return
3 Discounted payback
