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Chapter 11

Further aspects of investment appraisal

Outcome

By the end of this session you should be able to:

 evaluate information to support project appraisal

 analyse information for use in long-term decision making, including
considerations of tax and inflation

 identify and integrate non-financial factors in long-term decisions

 discuss the financial consequences of dealing with long-run projects, and the
importance of accounting for the time value of money

 discuss the process of investment decision making, including origination of
proposals, creation of capital budgets, go/no go decisions

 use discounting, including the use of annuities in comparing projects with
unequal lives

 evaluate capital investment real options

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can

be found in Chapter 11 of your Study Text

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