investment appraisal
What investment appraisal means in Business A-Level, as defined for AQA, Eduqas.
Definitions of investment appraisal
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Reference: AQA
Adopting digital technology is this rather than a fashion choice, so ask what the system costs, what it saves each year and how long the payback runs.
Financial methods of assessing an investment, including the calculation and interpretation of payback, average rate of return and net present value.
A set of techniques used to evaluate the financial viability and potential profitability of an investment project.
Topics that use investment appraisal
- Analysing strategic options: investment appraisal (AQA A-Level)
- Assessing greater use of digital technology (AQA A-Level)
- Component 2: Investment appraisal (Eduqas A-Level)
Related terms
- average rate of return
- big data and data mining
- data quality
- Discount Factor
- net present value
- Net Present Value (NPV)
- non-financial factors
- payback period
Using investment appraisal in the exam
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