Several methods exist for evaluating investment projects under capital budgeting. Identify and explain three features of an ideal investment appraisal method

      

Several methods exist for evaluating investment projects under capital budgeting.
Identify and explain three features of an ideal investment appraisal method

  

Answers


Martin
Features of an ideal investment appraisal method

- Should consider time value of money
- Should utilize cash flows in project appraisal
- Should give absolute decision criterion whether to accept or reject a project
- Should rank independent projects in order of their economic viability
- Should distinguish between acceptable and unacceptable projects if they are mutually
exclusive.
marto answered the question on February 11, 2019 at 11:26


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