Capital investment appraisal

Capital investment appraisal helps a business decide whether a large purchase is worth making. It uses cash flows — the

Capital investment appraisal

Capital investment appraisal

Capital investment appraisal uses specific terms to judge whether a large purchase is worthwhile. These four terms — pay

Capital investment appraisal

Capital investment appraisal

Payback period tells you how many years a project takes to recover its initial cost. Net present value (NPV) adjusts all

Capital investment appraisal

Capital investment appraisal

Both payback and net present value (NPV) help businesses judge whether a large investment is worthwhile. Each method has

Capital investment appraisal

Capital investment appraisal

When a business decides whether to invest in a major project, it weighs up financial results like payback period and NPV

Capital investment appraisal