A Reminder on Investment Appraisals.pdf - Investment Appraisals SMN 224 – Corporate Finance Dr Mingzhu Wang Outline 1 Net Present Value 2 The

A Reminder on Investment Appraisals.pdf - Investment...

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SMN 224 Corporate Finance Dr. Mingzhu Wang Investment Appraisals
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Outline 1. Net Present Value 2. The Profitability Index 3. The Payback Period Method 4. The Discounted Payback Period Method 5. The Average Accounting Return Method 6. The Internal Rate of Return 2
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The variety of Investment Appraisal Methods NPV is just one among a range of instruments / methods used in investment appraisal These various methods might be a better fit to specific requirements by managers / shareholders (need for liquidity, comparative purposes ) However NPV remains the most reliable instrument in theory 3
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