Contents
Introduction 2- Basic Investment Appraisal Technique 2
- Average Rate of Return (ARR) 5
- Payback Period 4
- Discounted Cash Flow (DCF) 6
- Discounted Cash Flow Techniques 7
- Net Present Value 7
- Internal Rate of Return 11
- Comparison of Merits and Limitations of the Investment Appraisal Techniques 13
- Conclusion 14
- References 15
Description
This report is based on the following question -
Assignment Question
Discuss the basic investment appraisal techniques focusing, in particular, on two discounted cash flow techniques, namely, the internal rate of return (IRR) method and the net present value (NPV) method. Illustrate the merits and limitations of the IRR and NPV methods, together with their advantages with respect to accounting-based methods.
