Class Activity
Make a detailed presentation of the appropriate investment appraisal techniques and making
comprehensive comparison among them.
ii) Investment appraisals will feature an assessment of the expected return for the expenditure
made and an estimation of the future costs and benefits of the project(s) under consideration.
When evaluating a capital budget, the costs and benefits are required to be evaluated over the
foreseeable future, which is usually the expected useful economic life of the non-current asset
that is to be purchased. Given below are a number of investment appraisal techniques a
company can use to assess the viability of capital investment projects.
a) Return on capital employed
b) Payback period
c) Net present value
d) Internal rate of return
Required
With formula explain each investment appraisal technique and elaborate their advantage and
disadvantage of each.