Use of capital appraisal measures in evaluation of projects: financial factors and non-financial factors
When a business decides whether to invest in a major project, it weighs up financial results like payback period and NPV alongside non-financial factors like staff impact and reputation.
Real World
When Amazon decided to build its HQ2 in Arlington, Virginia, the NPV of tax incentives was positive, but non-financial factors — local talent pool, transport links, and community opposition in other cities — were equally decisive.
Exam Focus
Use 'however' to link financial and non-financial factors — examiners reward balanced evaluation, not just listing points.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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