Payback period & Average rate of return

IB Business Management: Payback period & Average rate of return

Investment appraisal is the formal process of quantifying the financial risks of an investment decision. It helps to determine if a capital investment project is worthwhile, by examining the costs of the investment and the expected return on investment.Hence, investment appraisal enables decision makers to make a more informed decision, based on quantitative methods. Whilst qualitative factors may also be considered...


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