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Why investment appraisal matters

Why investment appraisal matters

Investment appraisal timeline with £260,000 initial outflow at Year 0, annual inflows to Year 4, cumulative cash flow totals and payback point during Year 3

Investment appraisal helps a business judge whether a major project is worth funding before it spends large sums on machinery, shops, technology or product development. These are capital investments, so the decision is expensive, hard to reverse and based on forecasts.

Investment appraisal Lesson

  1. A Level
  2. /Business
  3. /Investment appraisal

Step-by-step lessons covering Eduqas A Level Business Investment appraisal for A Level Business. Each lesson works through exam-style questions in Component 1, Component 2 and Component 3 format. Build up your knowledge of the core business functions first, then focus revision time on the strategy and evaluation-heavy topics, since these carry the most marks.

Lessons