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BUSINESS IMPROVEMENT PROGRAMMES

INVESTMENT APPRAISALS

An Investment appraisal is the process by which one can assess whether or not an investment in a project is worthwhile. It is a tool used by both private and public sector organisations

Businesses invest to increase their profits by improving their operations, to match supply to demand, to reduce manufacturing costs and to increase productivity and efficiency.

For “Not for Profit” organisations the incentive to invest is driven by the need to improve the efficiency, effectiveness and economy of the organisation to provide “Value for Money”

It is essential that managers with responsibility for investments have an understanding of the methodologies and theories behind investment appraisal.

INVESTMENT APPRAISAL METHODOLOGY

Typical methodologies for investment appraisal include:

Pay back period
Accounting rate of return
Net Present Value
Internal Rate of Return (IRR)
Profitability Index
Discounted Cash Flow
Risk Assessment

PROjEN are experienced in carrying out investment appraisals. Using recognised techniques, PROjEN will carry out the investment appraisal on your business’s behalf. Where necessary PROjEN will explain the methodology to your key business personnel, ensuring that they are knowledgeable and confident when justifying the proposed investment.

If you want to know more, please contact PROjEN on 01928 752500 or complete the on-line enquiry form