This week’s topics
Appraisal Application and Project Evaluation
- Comparing mutually exclusive capital projects using NPV and ARR
- Assessing internal rate of return (IRR)
- Qualitative factors in investment decisions
- Formulating and presenting final investment recommendations
- NPV and Mutually Exclusive Investments
- NPV IRR Payback period scenarios
- Internal Rate of Return (IRR)
What you will be able to do
- 3.3 Explain how to undertake investment appraisal.
- 4.4 Apply investment appraisal methods to alternative capital investment options.
Activity
Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: explain how to undertake investment appraisal.
Study materials
Videos
- NPV and Mutually Exclusive Investments · YouTube · Edspira · 5 min · for registered students
- NPV IRR Payback period scenarios · YouTube · The Finance Storyteller · 7 min · for registered students
- Internal Rate of Return (IRR) · YouTube · The Finance Storyteller · 5 min · for registered students
Further resources
- Principles of Finance 2e, ch. 16.5: Choosing between projects · PDF · OpenStax, textbook chapter; pp. 480–485 · for registered students
- Managerial Accounting, ch. 8: How Is Capital Budgeting Used to Make Decisions? · PDF · Saylor Academy, textbook chapter; pp. 472–540 · for registered students
- SMEs, Sustainability, and Capital Budgeting · PDF · Reading, article · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.