6/20/09

A-Level Accounting 9706 on Investment Appraisal

Under Investment Appraisal of A-Level Accounting notes of amplification, we have main categories of:

(a) The elements of investment appraisal including discounted cash flow methods
(b) Other factors affecting investment decisions
(c) Sensitivity Analysis


Under item (a),

The Capital investment appraisal to include:

(a) Ascertainment of future net cash flows;
(b) Payback
(c) Discounted payback
(d) Accounting rate of return (ARR)
(e) Discounting methods for calculating the net present value and internal rate of return
(f) Advantages and disadvantages of using different methods of investment appraisal

Under item (b) on other factors affecting investment decisions, it includes critical changes in initial outlay and future net cash flows


Click here for ALL TOPICS on Capital Investment Appraisal

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