Abstract
Investment appraisal is the evaluation of investments with regard to their profitability and/or cost effectiveness. The overall objective is to identify the attractiveness of the investment from the view point of the investor. The methods used are the Net Present Value (NPV), Internal Rate of Return (IRR) and Annuity method. For small scale investments, the payback method and the return on investment method (ROI) are also applied.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2018 Springer International Publishing AG
About this chapter
Cite this chapter
Konstantin, P., Konstantin, M. (2018). Investment Appraisal Methods. In: Power and Energy Systems Engineering Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-72383-9_4
Download citation
DOI: https://doi.org/10.1007/978-3-319-72383-9_4
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-72382-2
Online ISBN: 978-3-319-72383-9
eBook Packages: EnergyEnergy (R0)