Investment Appraisal

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9 Terms

1
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Investment Appraisal

A process of deciding whether a project is worth the money

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Payback Period

The time it takes for an investment project to earn enough profit to pay back its initial investment. 

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Average rate of return

How much profit does an investment make on average a year

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Net present value

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Objectives

Specific goal that firm wants to achieve

6
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Risk profile


Shows how much risk a business is willing and able to take

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State of economy 

The current economic state of a country

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Corporate image

The perception and opinion the public has of the firm.

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Exogonous shocks


Unpredictable events that have a huge impact on the firm