Investment appraisal

Investment appraisal is a process whereby the likely revenues and costs generated by an investment are evaluated over the life of the project.. Such appraisal includes the assessment of the risks of, and the sensitivity of the project’s viability to, forecasting errors. The appraisal enables a judgement to be made whether to commit resources to the project.

 

reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u

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