Capital Appraisal Measures Flashcards
1
Q
Types of factors which affect business decision making
A
- internal
* external
2
Q
Internal factors
A
- effect on profit
* effect on cash
3
Q
External factors
A
- legal requirement
- effect on the economy
- effect on employees
- effect on environment
4
Q
Financial factors
A
- source of finance
- cost of capital
- total estimated cost of project
- taxation implications
- working capital requirement
- audit of project
5
Q
Non-financial factors
A
- economic climate
- political implications
- commissioning
- training
- location
- capacity
- product life cycle
