Capital Investment Appraisal

Abstract

This chapter considers a number of techniques of capital investment appraisal which can be used to make a decision when investing in a longterm capital project. When a business wishes to invest in a new factory, computer facilities, production line or any other major project that requires capital investment, there are a number of decisions to be made. Some are organisational and personnel decisions, but it is crucial that the financial implications of any decisions are considered. At the very least, management will want to know that the business will get its money back.