6.5 Investment Appraisal
Appraising potential projects is known as investment appraisal and it has the following features:
- Assessment of the level of expected returns earned for the level of expenditure made
- Estimates of future costs and benefits over the project’s life
Investment Appraisal
Investment appraisal is the analysis done to consider the profitability of an investment over the life of an asset alongside considerations of affordability and strategic fit.