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3.8 INVESTMENT APPRAISAL - Coggle Diagram
3.8 INVESTMENT APPRAISAL
Investment opportunities
Investment is expenditure by a business on buying another business or non-current assets with the aim of creating a future stream of revenue.
Risk is the chance of a misfortune occurring, possibly resulting in financial loss.
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Investment appraisal is a series of techniques designed to assist businesses in judging the desirability of investing in particular projects.
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Payback period
A simple technique that measures the time period required for the earnings from an investment to recoup its original cost (FORMULA PAGE 350)
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