Please enable JavaScript.
Coggle requires JavaScript to display documents.
Investment Appraisal - Coggle Diagram
Investment Appraisal
-
Simple payback
-
It measures the time it takes for an investment to recover its initial cost through the net cash inflows generated by the project e.g. if a business invests £100,000 in a project that generates £25,000 per year, the Payback Period would be 4 years.
Essentially, it tells you how long it will take for the project to "pay for itself.”
-
-
-
-
Understanding investment appraisal techniques allows businesses to assess the time it will take to recover their investment, the overall profitability, and the risks involved, ensuring that smart, data-driven decisions are made.