Capital investment appraisal appraisal process and methods

Capital investment appraisal appraisal process and methods

Capital investment appraisal appraisal process and methods

... the technical and economic feasibility of the project, cash flows etc Investment Appraisal Process Stages: decide which one to undertake authorisation and implementation review and monitor: learn ... Diversification for risk reduction Need for Investment Appraisal Large amount of resources are involved and wrong decisions could be costly Difficult and expensive to reverse...
Ngày tải lên : 04/10/2015, 19:55
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Capital investment appraisal (an introduction)

Capital investment appraisal (an introduction)

... Session Capital Investment Appraisal • By the end of today’s session(s), you should be able to: – Understand the context of investment appraisal decisions – Evaluate capital projects ... Average capital invested Where the average annual profit is the total profit for the whole period (after depreciation) divided by the life of the investment in years; and The average capital...
Ngày tải lên : 04/10/2015, 19:55
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Capital investment appraisal 2

Capital investment appraisal 2

... Jones, 20 02, p 4 52 Business Accounting The capital investment decision  Capital investment appraisal techniques are used for making decisions concerning the investment of large amount of capital ... Exercise Capital investment decisions Business Accounting Exercise Capital investment decisions Business Accounting Solution Capital investment decisions Business Ac...
Ngày tải lên : 04/10/2015, 19:56
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Capital investment appraisal

Capital investment appraisal

... maximize the firm’s wealth Basic techniques of making capital investment appraisal for evaluating proposed capital investment projects Investment appraisal methods Considering the time value of money ... = Average investment cost Total profit Average net profit per year = No of life of the project Initial investment Average investment cost = 48 Acceptance criterion In eval...
Ngày tải lên : 04/10/2015, 19:56
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Capital investment appraisal 3

Capital investment appraisal 3

... Capital investment appraisal Capital investment involves the sacrifice of current funds in order to obtain the benefit ... required Capital investment is long-term and the recoupment of investment may involve a significant period of time Factors to consider in assessing capital projects The size of the investment ... regarding the projected cash flows The working capital...
Ngày tải lên : 04/10/2015, 19:56
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Investment appraisal spot and derivative markets

Investment appraisal spot and derivative markets

... average past, projections… – Investment may take place over several periods Lecture III: Investment Appraisal 13 Financing & Investment Decisions • The financing and investment decisions are treated ... used Lecture III: Investment Appraisal A Project Proposal • Cash Flow: – CF1 = 1100 and CF2 = 1210 • KC = 2100 • R = 10% • Should you invest? • 2310 > 2100 Lecture III: Inve...
Ngày tải lên : 04/10/2015, 20:07
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global real estate investment trusts-people, process and management[team nanban][tpb]

global real estate investment trusts-people, process and management[team nanban][tpb]

... Phases, Stages and Steps comprising the REIT real estate investment decision making process 1.1 People and process As the title Global Real Estate Investment Trusts: People, Process and Management ... internationally recognised real estate industry expert and highly regarded real estate academic, being a director and adviser to real estate investment...
Ngày tải lên : 05/11/2014, 14:30
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CAPITAL BUDGETING INVESTMENT APPRAISAL METHODS

CAPITAL BUDGETING INVESTMENT APPRAISAL METHODS

... Concept of Capital Budgeting  Capital Expenditure Budget  Importance of Capital Budgeting  Rational of Capital Expenditure  Kinds of Capital Investment Proposals  Factors affecting Investment ... affecting Investment Decision  Investment Appraisal Methods  Capital Rationing Concept of Capital Budgeting  Finance Manager is concerned with Planning and Fin...
Ngày tải lên : 04/10/2015, 19:55
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the method of investment appraisal which may be applied to evaluated and rank potential investment opportunities and their relative merits and limitations

the method of investment appraisal which may be applied to evaluated and rank potential investment opportunities and their relative merits and limitations

... (international business and management) II- The method of investment appraisal which may be applied to evaluated and rank potential investment opportunities and their relative merits and limitations In ... places together with the potential effects of a takeover Then, I will give four method of investment appraisal to evaluated...
Financial appraisal projects and capital acquisitions

Financial appraisal projects and capital acquisitions

... limited financial resources, the resistance of Government to guarantee financing obligations, and a country of expectations, how you know which projects to undertake and which capital acquisitions ... faced with the ever present dilemma of efficiently and effectively utilising the limited financial and natural resources to fulfill the economic and social obligations of the...
Ngày tải lên : 04/10/2015, 19:47
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INVESTMENT APPRAISAL METHODS

INVESTMENT APPRAISAL METHODS

... Estimated average investment X 100 % The others include: ARR = Estimated total profits X 100 % Estimated initial investment ARR = Estimated average profits X 100 % Estimated initial investment There ... repayments from an investment, which will provide the money for other investment THE PAY BACK METHOD The payback is defined as the time it takes the cash inflow from a capital inves...
Ngày tải lên : 04/10/2015, 20:07
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The PERFORMANCE APPRAISAL QUESTION and ANSWER BOOK: A SURVIVAL GUIDE FOR MANAGERS

The PERFORMANCE APPRAISAL QUESTION and ANSWER BOOK: A SURVIVAL GUIDE FOR MANAGERS

... PERFORMANCE APPRAISAL QUESTION and ANSWER BOOK Chapter The Importance of Performance Appraisal 1.1 What is ‘ performance appraisal ’? Performance appraisal is a formal management system that provides for ... compensation manager—may also review and approve the assessment Phase 4: Performance Review The manager and the subordinate meet, usually for about...
Ngày tải lên : 23/10/2013, 10:15
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Tài liệu Investment Appraisal pptx

Tài liệu Investment Appraisal pptx

... internal rate of return 18 INVESTMENT APPRAISAL ‘‘Forecasts can be injurious to your wealth.’’ Dean LeBaron, b.1933, investment manager The final step of investment appraisal is the financial calculation ... cultures.’’ Investment appraisal and return on investment calculations have cultural differences across the globe International companies need to build this into their inve...
Ngày tải lên : 18/02/2014, 07:20
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ch. 2 investment appraisal - principles

ch. 2 investment appraisal - principles

... TwoŠPeriod Investment Project + B1 B2 K - Year Calculating Net Present Value NPV = -K + B1[1/(1+r1] + B2[1/(1+r1][1/(1+r2] Assume r1 = r2 = r: NPV = -K + B1[1/(1+r)] + B2[1/(1+r) ]2 IRR: Solve ... of Return, IRR = MPK - = [BC/AC] > r, hence undertake the project To solve for IRR choose rP to set BC[1/(1+rP)] - AC = ie IRR = [BC/AC] -1 Figure 2. 2 : A Country’s Inter-tempor...

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