Abstract
An efficient and accurate means of appraising the worth-whileness of prospective investment is obviously essential for a firm which seeks to maximise profits, where all investments manifestly do not yield the same returns over the same period of time. The substitution of other objectives for that of profit maximisation does not, however, negate the need for accurate investment appraisal, since it is virtually impossible to justify an intended investment subjectively except in circumstances where the potential economic returns are immaterial, whereas most firms in practice do couch their objectives in some sort of economic terms.
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© 1974 Peter J. Curwen
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Curwen, P.J. (1974). Capital Investment Appraisal. In: Managerial Economics. Palgrave, London. https://doi.org/10.1007/978-1-349-15524-8_5
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