3.8 Investment Appraisal Flashcards
1
Q
Investment Appraisal
A
The quantitative techniques used in evaluating the viability or attractiveness of an investment proposal
2
Q
Payback Period
A
Estimates the amount of time required for an investment project to pay back its initial cost/ expenditure
3
Q
Average Rate of Return (ARR)
A
Measures the annual net return on an investment as a percentage of its capital cost
4
Q
Net Present Value (NPV)
A
Calculates the difference between the present values of future returns and the original cost of investment
