BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Investment Appraisal
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Cash Flow Forecast
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Payback period
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Investment
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Detailed explanation-1: -What is meant by the term “Investment appraisal’? It is a general term referringg to the quantitative techniques used to calculate the financial costs and benefits of an investment decision. 3 main methods of investment appraisal are: payback period, the accounting rate of return, and net present value.
Detailed explanation-2: -Quantitative analysis (QA) in finance is an approach that emphasizes mathematical and statistical analysis to help determine the value of a financial asset, such as a stock or option.
Detailed explanation-3: -Quantitative investment appraisal refers to judging whether an investment project is worthwhile through numerical (financial) means. Information needed to be able to undertake a quantitative investment appraisal includes: 1. Initial capital costs of the investment. 2.
Detailed explanation-4: -Appraisal techniques accounting rate of return. payback period. discounted cashflow. investment risk and sensitivity analysis.