Investment Appraisal Techniques

 Actually I have learnt all those capital investment methods in TAR University College before but I forgotten how to calculate as long time no practices it. I’m very interesting in calculating the investment appraisal techniques as all these methods are easier and faster to get the cash flow for the projects.

Through this lesson, I have refresh my mind on the way to determining the most profitable project and forecast the present and future value by two methods which are traditional and modern methods. The traditional method is to calculate the Pay Back Period and Average Annual Percentage Rate of Return (ARR) and the Modern methods is to calculate the Discounted Cash Flow (DCF), Net Present Value, and Internal Rate of Return (IRR).

I am doing fine with all those traditional and modern methods as I have the basic calculation foundation before. Hence, it is not a difficult things for me to calculate the cash flow for new proposed development and determine the viability of my proposed development in term of profit.

After this lesson, I had refreshing my mind on all the investment appraisal techniques and it is very useful in future working career as it can help me to determine the viability of each projects. Furthermore, I had also learnt an important skill which is Managing Costs under the CIOB Professional Competencies Framework.