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Level 3 Diploma in Business Management

Appraisal Application and Project Evaluation

BM305 · Finance in Business — Week 11 of 16

CourseBM305
Week11 of 16
SemesterII
TutorOnline in the course chat

This week’s topics

Appraisal Application and Project Evaluation

  1. Comparing mutually exclusive capital projects using NPV and ARR
  2. Assessing internal rate of return (IRR)
  3. Qualitative factors in investment decisions
  4. Formulating and presenting final investment recommendations
  5. NPV and Mutually Exclusive Investments
  6. NPV IRR Payback period scenarios
  7. 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.
Course chat

Admitted students ask questions on this week’s page in the student portal: an AI assistant trained on the course answers first, and during the course’s timetabled classes Connect to your tutor brings your tutor into the chat, who may start a call if needed.

Open this week in the portal
Course plan
  • Week 1: Introduction to Business Records and Accounting
  • Week 2: Business Finance and Financial Statements
  • Week 3: The Double Entry Accounting System
  • Week 4: Bank Reconciliation
  • Week 5: Control Accounts and Correction of Errors
  • Week 6: Absorption and Marginal Costing
  • Week 7: Budgeting Framework and Subsidiary Budgets
  • Midterm: Midterm evaluation
  • Week 9: Budgetary Control and Variance Analysis
  • Week 10: Investment Appraisal Methods
  • Week 11: Appraisal Application and Project Evaluation
  • Week 12: Applying Finance in Business in practice: case studies
  • Week 13: Assignment workshop: research, planning and referencing
  • Week 14: Assignment workshop: drafting, feedback and improvement
  • Week 15: Review and coursework completion
  • Final: Final assessment and submission
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