"Viability Of A Project Using Investment Appraisal Techniques" Essays and Research Papers

Viability Of A Project Using Investment Appraisal Techniques

Investment Appraisal Investment: Spending money into something with an expectation of making profit/ increasing wealth in the future Investment Appraisal: Is a process of evaluating the attractiveness of an investment proposal using various techniques/methods, Methods Payback period Accounting rate of return (ARR – ROCE) Investment appraisal Internal rate of return (IRR) Pay Back Period (PBP) The Payback Period (PBP) - The time taken...

Basic financial concepts, Cash flow, Discounted cash flow 1382  Words | 7  Pages

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Project Appraisal Techniques

Project appraisal techniques are used to evaluate possible investment opportunities and to determine which of these opportunities will generate the best return to the firm’s shareholders. Therefore, it is vital for the firm if they wish to continue receiving funds from shareholders to employ the best techniques available when analysing which investment opportunities will give the best return. There are two types of project appraisal techniques: non-discounted cash flows and discounted cash flows...

Capital budgeting, Cash flow, Discounted cash flow 2564  Words | 7  Pages

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Investment Appraisal

MAKING TECHNIQUES (ADMT) LECTURER: MR. S. A. PALAN CONTENTS Introduction…………………………………………………………………….………2 Define Capital Investment Appraisal…………………………….………………….…2 Discounted cash flow methods……….………………………….………………….…4 Explanation of NPV…………………… ...................................................................…4 Explanation of IRR…………….……………………….…….……..…………………5 Advantages and disadvantages...……..……………………………………….……….5 Project calculations...

Capital budgeting, Cash flow, Discounted cash flow 826  Words | 5  Pages

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investment appraisal

According to Brealey and Myers (1988) the investment decision is perhaps the most important financial decision for a business. Investment can be defined as growth in stock of physical assets. The investment decision of how much should be invested now so that benefits can be received in near future. An investment is “any course of action that involves sacrifices now or in the near future in anticipation of higher future benefits” (Pike and Neale, 2003). An investment at present will define the business...

Capital budgeting, Cash flow, Discounted cash flow 2162  Words | 7  Pages

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Investment Appraisal

benefits of investment wherever possible. Any project which requires an outlay of money or other resources and which then generates a flow of costs and benefits in subsequent periods should be regarded as an investment. The financial appraisal methods helps in guiding whether to incur an expense now so that benefits can be ripped in later periods (investment), or whether the funds should be used to generate immediate benefits, now ( consumption ) Deciding where to focus the investment of an organization...

Capital budgeting, Cash flow, Discounted cash flow 951  Words | 3  Pages

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Investment appraisal method

10 Introduction With the development of business, more and more techniques have been widely used into companies to maximize the wealth. Capital investment appraisal is the budgeting of major capital and investment to company expenditure which facilitates the determination of the concerned firm's investments. Doubtlessly, firms will benefit from modern financial technology. The most common ways of investment appraisal are payback, IRR and NPV methods; each of them has its own strengths and...

Capital budgeting, Cash flow, Corporate finance 1558  Words | 3  Pages

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Investment Appraisal Essay Question

Investment Appraisal – Essay Question Q3) Using quantitative and qualitative information, suggest which school Felix and Holly should invest in. In the case study we are told that Felix and Holly are finding it hard to decide whether to invest in a soccer school or a netball school. They can use many different investment appraisal techniques which are both qualitative and quantitative in order to identify which investment would be most appropriate or worthwhile. They need to consider the level...

Capital budgeting, Finance, Internal rate of return 848  Words | 3  Pages

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Appraisal Techniques of Public Investments and Projects

Planning Directorate Public Investment Technical Team Unit Capacity Building to Support the Rwanda Public Investment Program Investment Appraisal Training Manual for Government Staff Prepared by Sulaiman Kyambadde P.O. Box 1851 Kigali, Rwanda Tel: +250 255114413 (office) October 2011 The purpose of this Training Manual is to help PITT implement the use of international best practices of Investment Appraisal techniques in its programming of public sector investments. It describes how public...

Cash flow, Discounted cash flow, Government 62980  Words | 316  Pages

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Capital Investment Appraisal

Evaluate the different methods of capital investment appraisal available to organisations and clearly show when each method would be used (if at all) illustrating your answer with relevant examples. Capital investment appraisal can be described as the decision-making process used by organisations to evaluate different investments and to decide which fixed assets to purchase. In the following, four different methods of investment appraisal shall be discussed: accounting rate of return (ARR), payback...

Capital budgeting, Cash flow, Finance 1019  Words | 3  Pages

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Financial Appraisal Methods

In this assignment I will be identifying the main capital appraisal techniques and evaluate them by showing their strength and weaknesses. Then compare them with each other and show the main difference between them. At the end I will be showing some tables taken from different books ranking these methods and showing which methods are more used by most of the companies in the US and UK. Most of the competitive companies are looking for expansion and growth in order to control a bigger share of...

Capital budgeting, Cash flow, Discounted cash flow 1742  Words | 6  Pages

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Investment Appraisal Techniques

Investment appraisal techniques Introduction Investment is a key part of building your business. New assets such as machinery can boost productivity, cut costs and give you a competitive edge. Investments in product development, research and development, expertise and new markets can open up exciting growth opportunities. At the same time, you need to avoid overstretching...

Cash flow, Discounted cash flow, Finance 3567  Words | 11  Pages

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Traditional Investment Appraisal Techniques

“Traditional Investment Appraisal Techniques Cannot Cope With the Fast Changing Environment in Manufacturing Industry Today” Introduction “If you can't measure it, you can't manage it”. This basic principle of Peter Drucker is nowadays especially important when it comes to the valuation and management of strategic investments, which have the potential to bring sustainable change to the business processes of a company. When it comes to the process of assessing strategic investment proposals through...

Capital budgeting, Finance, Investment 2466  Words | 7  Pages

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Project Appraisal

Subject Code: PPA1C Paper: PROJECT APPRAISAL Specific Instructions:  Answer all the four questions.  Marks allotted 100. Each Question carries equal marks.  Word limit is 200 - 300words General Instructions:  The Student should submit this assignment in the handwritten form (not in the typed format)  The Student should submit this assignment within the time specified by the exam dept  Each Question mentioned in this assignment should be answered within the word limit...

Cash flow, Corporate finance, Depreciation 946  Words | 6  Pages

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Explain the Theoretical Rationale for the Npv Approach to Investment Appraisal

Explain the theoretical rationale for the NPV approach to investment appraisal and compare the strengths and weaknesses of the NPV approach to two other commonly used approaches. One of the key areas of long-term decision-making that firms must tackle is that of investment - the need to commit funds by purchasing land, buildings, machinery, etc., in anticipation of being able to earn an income greater than the funds committed. In order to handle these decisions, firms have to make an assessment...

Cash flow, Discounted cash flow, Finance 1419  Words | 5  Pages

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Project Management

Unit /Module | Project Management | Assessment | Individual Assignment | Lecturer | Bandujeewa Samaranayake | Student Name | | ID | Date Handed Over | | Date Due | | Initial Submission Date | 15/03/2012 | Re-Submission Date | | Students to tick if attempted | Grading Opportunities | Criteria Met ? | Assessor Feedback | | | Initially | On Re- Submission | | | P1 | | | | | P2 | | | | | P3 | | | | | P4 | | | | | M1 | | | | | M2 | | | | ...

Construction, Management, PRINCE2 1128  Words | 5  Pages

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The Misapplication of Capital Investment Appraisal Techniques

The misapplication of capital investment appraisal techniques Drury, Colin, Tayles, Mike. Management Decision. London: 1997. Vol. 35, Iss. 2; pg. 86 Abstract (Summary) An examination of the surveys of capital budgeting practices that have been undertaken during the past 20 years in both the UK and US reveals a trend towards a continuing increase in the use of more sophisticated capital budgeting techniques. In a longitudinal survey of capital budgeting practices of large UK companies between...

Capital budgeting, Cash flow, Discounted cash flow 5795  Words | 18  Pages

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Accountant’s Role in Project Feasibility and Viability Appraisal Study with Reference to Tanzani

ACCOUNTANT’S ROLE IN PROJECT FEASIBILITY AND VIABILITY APPRAISAL STUDY WITH REFERENCE TO TANZANI By Issaya TABLE OF CONTENTS 1.0 INTRODUCTION Many new projects which have passed countless feasibility and viability appraisal studies have been sunk by unexpected events such as flood. fire, burglary, changes in legislation, plague, demographic shifts, an inability recruit and/or keep suitable staff, the failure of a major customer...

Accountant, Professional Accountant, Scientific method 2155  Words | 9  Pages

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Managing Financial Principles and Techniques

BTEC Level 7 Advanced Professional Diploma in Management Studies Managing Financial Principles and Techniques Prepared for: McCain’s Board of Directors By Arslan Irshad Dar Tooting and Broadway consults 12 June 2010 Table of Contents Introduction....................................................................................................1 Merits of accounting rate of return..............................................................................................1.1 ...

Cash flow, Finance, Financial ratios 2175  Words | 7  Pages

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Investment Appraisal Methods

LITERATURE REVIEW OF INVESTMENT APPRAISAL METHODS What is meant by investment appraisal practices? The investment appraisal process includes the generation of ideas, assessment and authorization, implementation and control of the project (Dennis R. Young, 2007). Decision-making is increasingly more complex today because of uncertainty. Additionally, most capital projects involve numerous variables and possible outcomes. For instance, estimating cash flows associated with a project involves working...

Capital budgeting, Cash flow, Discounted cash flow 2454  Words | 8  Pages

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Project Appraisal / Credit Appraisal

PROJECT APPRAISAL / CREDIT APPRAISAL Project / Credit appraisal is a skill which has to be acquired by study and supplemented by practice. Intuitive guess work has little place in appraising the credit rating or credit needs of a corporate unit. The credit managers of banks and Non Banking Finance Companies (NBFCs) are duty bound to accept or reject a proposal on the basis of its viability or non - viability. TECHNIQUES USED IN CREDIT APPRAISAL A. BY THE BANKS OR FINANCIAL INSTITUTIONS. B....

Bank, Bond, Credit rating 321  Words | 2  Pages

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Investment Appraisal

Table of contents: Page no. 1. Introduction 1 2. Investment appraisal 2 3. Payback method 3 4. Present value (PV), future value (FV) and net present value (NPV) 5 5. Project 1 6 6. Comparing projects 11 7. Conclusion 12 8. References 13 9. Bibliography 14 Introduction: In 21st century business is much more developed and competitive as well with the presence of so many competitors...

Cash flow, Discounted cash flow, Internal rate of return 2113  Words | 8  Pages

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Project Estimating Techniques

 CPMGT/303 Project Estimating Techniques This paper describes each of the project estimating techniques by explaining when each technique would be used, and how each technique is used. The information being explained provides sources of information that is needed to figure out the most appropriate technique for a project. When justifying an estimate there are certain tools you could use that will help one justify an estimate correctly, and the information being provide explains what tools will...

Approximation, Cash flow statement, Estimation 927  Words | 2  Pages

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Project Management

CURRICULUM AREA ENGINEERING BTEC HIGHER NATIONAL IN ENGINEERING UNIT CODE J601/0302 LEVEL 4 CREDITS 15 UNIT NUMBER / TITLE 37 Management of Projects OUTCOME: 1 ASSESSMENT TITLE: Assignment 1 – Phases of a Wind Farm Project STUDENT NAME ___________________________________________ Submission Date 9/4/13 Date Handed In Date Given Out 5/3/13 I certify that the work submitted for this assignment is my own. I am aware of the anti-plagiarism and submission policies of the college. Student Signature...

Game theory, Management, Project 893  Words | 5  Pages

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INVESTMENT APPRAISAL Exercise1: Project K has a cost of $52,125, its expected net cash inflows are $12,000 per year for 8 years, and its cost of capital is 12%. a. What is the project’s PP (time thu hồi dc vốn)? b. What is the project’s DPP? c. What is the project’s NPV? d. What is the project’s IRR? a) PP = 52,125/12,000 = 4.34 b) 52,125 – 12,000/1.12 – 12,000/1.12^2 – 12,000/1.12^3 – 12,000/1.12^4 – 12,000/1.12^5 – 12,000/1.12^6 = 2788 PV (7) = 12000/1.12^7 = 5428 DPP = 6 + 2788/5428...

Cash, Cash flow, Cash flow statement 586  Words | 3  Pages

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Project Appraisal

A SUMMER TRAINING REPORT ON EFFECTIVENESS OF PROJECT APPRAISAL HARYANA STATE INDUSTRIAL & INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED Submitted to Kurukshetra University, Kurukshetra in the partial fulfillment of the requirement of Master of Business Administration (MBA) (Session 2011-2013) Under the Guidance of: - Submitted by:- MR. ADDARSH...

Corporate finance, Debt, Finance 14846  Words | 56  Pages

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Internal Rate of Return (IRR) and Net Present Value (NPV) are both powerful tools used in business to determine whether or not to invest in a particular project; both methods have its pros and cons.

in a particular project; both methods have its pros and cons. If given a choice I would choose NPV, because of the potential to anticipate profitability. As it is assumed that the objective of a firm is to create as much shareholder wealth as possible for its owners through the efficient use of resources, the preferred method in determining whether or not to invest in a project is NPV. The reason for this is that NPV takes into account all the costs and benefits of an investment opportunity, making...

Capital budgeting, Discounted cash flow, Finance 853  Words | 3  Pages

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Using Balanced Scorecard for Subcontractor Performance Appraisal

Using Balanced Scorecard for Subcontractor Performance Appraisal S. Thomas NG, Hong Kong, China Key words: Subcontractor performance, performance appraisal, balanced scorecard SUMMARY Several influential industry reports have pointed out that a decline in construction quality and productivity could be attributed to the performance of subcontractors who are entrusted to complete the actual works, yet subcontractor performance appraisal is a much neglected subject in construction. To facilitate...

Balanced scorecard, Hong Kong, Management 1500  Words | 5  Pages

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Components and Methodologies That Comprise a Project Appraisal

Project appraisal- A methodology Appraisal involves a careful checking of the basic data, assumptions and methodology used in project preparation, an in-depth review of the work plan, cost estimates and proposed financing, an assessment of the project’s organizational and management aspects, and finally the viability of project. It is mandatory for the Project Authorities to undertake project appraisal or atleast give details of financial, economic and social benefits and suitably incorporate...

Cost, Cost-benefit analysis, Costs 654  Words | 2  Pages

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Project Selection - Qualitative Factors

 Project Selection – Qualitative Factors Introduction: The selection of a project or a portfolio of projects constitutes one of the main problems that managers are faced with. Decision of selecting an engineering, construction or R&D project is often fundamental for business survival. Such decisions usually involve prediction of future outcomes considering different alternatives. These predictions are not known with certainty, which results in a high level of uncertainty in managerial...

Decision making, Decision theory, Investment 967  Words | 4  Pages

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Project Techniques and Risk Management

2010 Project Techniques and Risk  Management     A practical and effective approach          Eng. Hayder Issa    Engineering Contracts Management Engineering Arbitration Rule in Solving Disputes Post Graduate Certificate in Project Management - UK     Project Techniques and Risk Management  A practical and effective approach  Managing business risk means managing the protection of your employees, customers, property, information and the environment. Risk management is attempting to identify...

Management, Operational risk, Project management 1882  Words | 6  Pages

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Project Appraisal

Describe various Input, Output and other locational factors those must be considered for assessing project feasibility. Q.7 What are the components of Investment Cost? Give a brief account of each. Q.8 Explain briefly the use of Profitability Index (P.I), Net Present Value (NPV), Internal Rate of Return (IRR) and Pay back period as an analytical techniques used in project appraisal. Q.9 A firm is considering replacing a computer system with a new one. Purchase price of new computer...

Capital budgeting, Cash flow, Discounted cash flow 357  Words | 2  Pages

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credit appraisal

THE PROJECT This project is done to understand, analyze and review the “CREDIT APPRAISAL SYSTEM” at “INDIAN BANK”. The project is basically done to analyze the appraisal process carried out in the bank and the criteria’s set by the bank for obtaining loan. As part of the project, a proposal has been selected and studied fully whether it satisfies all the criteria’s of the bank and suggested whether the proposal can be selected or not by the bank. It has been done by using appropriate...

Bank, Bond, Cash flow 820  Words | 3  Pages

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Quality Management Tools and Techniques

tools and techniques SHUAA Capital The research topic How Quality and Management tools and Techniques are being implemented in SHUAA Capital. Introduction This research prepared is an individual is an individual project which is one of the necessities in a Course of Quality Management Tools and Techniques. The research will be handed over to the Course Instructor. The purpose of the research The research’s purpose is to identify the Quality and Management Tools and Techniques the organization...

Capital market, Financial markets, Financial services 1482  Words | 5  Pages

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Investment Appraisal

INVESTMENT APPRAISAL Introduction The government undertakes a variety of activities. They are responsible for setting macroeconomic policy; they seek to promote equity by aiding the poor and the disadvantaged and they provide a variety of services, such as education, health Care, defense, infrastructure, police and postal services. Many of these activities involve large investments. Recent developments such as expanding the N3 Network infrastructure in preparation for the GP – Led health...

Capital accumulation, Collective investment scheme, Decision making 2528  Words | 11  Pages

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Projects Using GSM Techniques

Projects using GSM techniques: 1. µc based security system and parameters controlling for building automation using GSM technique. 2. Home Security with multiple sensors and mobile messaging facility using GSM techniques. 3. Micro Controller based SMART HOME with automatic image capturing and multiple sensors. 4. Remote Process data acquisition and controlling using GSM Techniques. 5. Micro Controller based wireless automation of Power Substation using GSM techniques ...

Access control, Automation, Control theory 1941  Words | 8  Pages

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Accounting and Decision Making Techniques

Accounting and Decision Making Techniques Assignment MFP/MBA November 2012 –March 2013 Course Lecturer: S.A. Palan ONUR CAN ASLAN B0316KGKG1112 2013 Table of Content ABSTRACT 3 INTRODUCTION 4 Importance of Investment Appraisal for Business Entities 5 Calculations of NPV, IRR and Payback Period 5 Selection of Projects 8 Changes in the NPV with cost of capital 8 Changes in the IRR with cost of capital 9 Difference of sensitivity between Long-term and Short term NPV 9 ...

Discounted cash flow, Finance, Internal rate of return 1942  Words | 7  Pages

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Project Appraisal

CHAPTER 1 INTRODUCTION PROJECT APPRAISAL Every organisation has to examine the viability of each project before it provides financial assistance. It has to ensure that the project will generate sufficient funds on the resources invested in it. With the opening of new factory outlet, the study of viability of a project has become more vital for financing a project. Project appraisal the process of critical evaluation of all the six faces of the project appraisal namely: 1. Technical analysis ...

Balance sheet, Cash flow, Discounted cash flow 10740  Words | 54  Pages

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Investment Appraisal

INVESTMENT APPRAISAL One of the key areas of long-term decision-making that firms must tackle is that of investment - the need to commit funds by purchasing land, buildings, machinery and so on, in anticipation of being able to earn an income greater than the funds committed. In order to handle these decisions, firms have to make an assessment of the size of the outflows and inflows of funds, the lifespan of the investment, the degree of risk attached and the cost of obtaining funds. The main stages...

Cash flow, Discounted cash flow, Finance 4701  Words | 17  Pages

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Investment Appraisal Techniques for Advanced Manufacturing Technology

Integrated Manufacturing Systems Emerald Article: Investment appraisal techniques for advanced manufacturing technology (AMT): a literature review F.T.S. Chan, M.H. Chan, H. Lau, R.W.L. Ip Article information: To cite this document: F.T.S. Chan, M.H. Chan, H. Lau, R.W.L. Ip, (2001),"Investment appraisal techniques for advanced manufacturing technology (AMT): a literature review", Integrated Manufacturing Systems, Vol. 12 Iss: 1 pp. 35 - 47 Permanent link to this document: http://dx.doi.org/10...

Decision making, Decision making software, Decision theory 8754  Words | 28  Pages

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Finance Project

Note: Below are some of the topics of projects for example only. You may visit the organization and the guide (Manager from the particular Organization may suggest you some suitable topic related to the Organization) Suggested topics are Projects topics for MBA but are not limited to: Sl.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Project Topics PROJECT TOPICS FOR HUMAN RESOURCE MANAGEMENT A study of performance appraisal / performance management system in XYZ organization...

Inventory, Logistics, Management 898  Words | 3  Pages

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Super Project

The Super Project The Super Project case mainly deals with the efficiency of project tool analysis in capital budgeting process. The three techniques that General Foods management used to determine whether Super Project was a worthwhile project were: • Incremental basis • Facilities-used basis • Fully allocated facilities and costs basis The three techniques mentioned above will be discussed in more details in question 4 below. Questions: 1. What are the relevant cash flows for General...

Capital budgeting, Cash flow, Discounted cash flow 1486  Words | 5  Pages

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percentage of cell viability using a haemocytometer

An experiment to determine percentage of cell viability by using serial dilutions and a haemocytometer Aim The aim of this experiment was to determine accuracy of the cell count and how valid the result of the experiment will be. Materials and Methods Refer to Scientific and Laboratory skills practical booklet. (Pg. 10-Pg. 12) Results Table one: Raw data (Viable cells) Tube Counts (4x4 grid) Counts (4x4 grid) Counts (4x4 grid) Counts (4x4 grid) Average Count A 34 31 ...

Chemistry, Concentration, Count 464  Words | 5  Pages

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Investment Detective

Case 17 – The Investment Detective The case of the Investment Detective laid out the cash flows for us in each of eight different projects. Before doing any calculations we came up with the assumption that we could not rank the projects simply by inspecting the cash flows. Without the ability to rank the projects based off of cash flows solely, we had to use some analytical criteria as a capital budgeting analyst to provide some thorough support and reasoning for how we ranked the four best...

Capital budgeting, Cash flow, Internal rate of return 868  Words | 3  Pages

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Various techniques of capital budgeting

Management Subject: Various techniques of capital budgeting Capital budgeting is the process in which the company plans whether to purchase or do investment in certain projects or long term assets such as new machinery, equipment, new products, research and development etc. There are many techniques which can be use make decision more easy and reliable. For all of these techniques company need the incremental cash flows which will be generate from the investment or the project. Then these cash flows...

Capital budgeting, Cash flow, Discounted cash flow 1195  Words | 4  Pages

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The Investment Detective Case

rank the projects by simply inspecting the cash flows. However, it is not a good method to rank the projects. In order to ensure that the investment projects selected have the best chance of increasing the value of the firm, we need tools to evaluate the merits of individual projects and to rank competing investments. In this case, our group using some tools which are Payback Period, Net Present Value (NPV) , Profitability Index (PI), and Internal Rate of Return (IRR). We are only using quantitative...

Bond, Capital budgeting, Cash flow 671  Words | 6  Pages

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The Nature of Investment Decisions and the Appraisal Process

D. 1. 2. 3. 4. 5. 6. INVESTMENT APPRAISAL The nature of investment decisions and the appraisal process Non-discounted cash flow techniques Discounted cash flow techniques Allowing for inflation and taxation in DCF Adjusting for risk and uncertainty in investment appraisal Specific investment decisions (lease or buy; asset replacement, capital rationing) The Nature of Investment Decisions and the Appraisal Process What is an investment? An investment is any expenditure in the expectation of...

Capital budgeting, Cash flow, Discounted cash flow 2650  Words | 9  Pages

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Project Portfolio Management

Project portfolio management:- A competitive advantage for organizations now is doing the right projects and making sure that there are resources to complete those projects. Project Portfolio Management (PPM) is a set of business practices and a process that allows organizations to manage projects as a strategic portfolio, ensuring the alignment of programs and projects with organizational objectives. Executives need to regularly review entire portfolios and programs, determine why projects are...

Cost, Management, Project 1292  Words | 6  Pages

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Capital Appraisal Methods

Capital Appraisal Methods QUESTION 1 Cardex Plc is considering investing in two new capital projects at different manufacturing locations. Each project entails the purchase of a range of new production machines, which would improve output volume and quality of products. Both of these projects are divisible ( ie. It is possible to undertake a fraction of a total project. ) Cardex Plc has only been able to negotiate a long term loan for, at 11% interest, to invest in new capital projects. The...

Capital budgeting, Cash flow, Cost-benefit analysis 838  Words | 7  Pages

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Investment Appraisal

Penta ltd (Investment appraisal) Introduction What is investment appraisal? It is the activity responsible for carrying out a cost benefit analysis to justify capital expenditure for a new investment. Capital investment decisions are those decisions that make current outlays in return for a stream of benefits in future years. . The characteristic of many investments is risk and uncertainty. many organisations prefer to avoid high risk investments but may consider these investments if they...

Capital budgeting, Cash flow, Corporate finance 2080  Words | 8  Pages

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Discuss what capital appraisal methodologies are most commonly used and explain the different techniques that can be applied to account for business risk

(a) Investment appraisal involves the assessment and selection of projects that add value to an organisation. Discuss what capital appraisal methodologies are most commonly used and explain the different techniques that can be applied to account for business risk when assessing the viability of investments. Introduction Capital investment is a long term investment on non-current assets that will bring wealth to a business and because finance is costly and scarce, risks need to accessed before...

Cash flow, Discounted cash flow, Finance 1998  Words | 8  Pages

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The Super Project Case

Executive Summary In the Super Project case, Crosby set out to argue that the current methodologies being utilized by General Foods Corporation to determine which capital investments to pursue did not always fit the bill. Crosby advocated using alternative methods for evaluation of Super including: 1) Incremental Basis, 2) Facilities Used Basis, and 3) Fully Allocated Basis. He provided the Corporate Budgets and Analysis management team with documentation that articulated each of the methods he...

Capital budgeting, Corporate finance, Evaluation 1364  Words | 5  Pages

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Investment Process

Investment Process Investment: Investment is the employment of funds on assets with the aim of earning income or capital appreciation. Investment has two attributes namely time and risk. Present consumption is sacrificed to get a return in the future. The sacrifice that has to be borne is certain but the return in the future may be uncertain. This attribute of investment indicates the risk factor. The risk is undertaken with a view to reap some return from the investment. For a layman, investment...

Bond, Finance, Investment 1255  Words | 4  Pages

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Advance Investment Appraisal

RELEVANT TO ACCA QUALIFICATION PAPER F9 Studying Paper F9? Performance objectives 15 and 16 are relevant to this exam ADVANCED INVESTMENT APPRAISAL Investment appraisal is one of the eight core topics within Paper F9, Financial Management and it is a topic which has been well represented in the F9 exam. The methods of investment appraisal are payback, accounting rate of return and the discounted cash flow methods of net present value (NPV) and internal rate of return (IRR). For each of these...

Cash flow, Costs, Discounted cash flow 2900  Words | 8  Pages

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Project Ideas


Conflict, Futures contract, Hedge fund 1330  Words | 5  Pages

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Project Proposal-Ford Motor Company

Project Proposal - Ford Motor Company Annette F. McGee FIN 575 March 11, 2013 Gabriel Renero Project Proposal - Ford Motor Company PROGRAM OR PROJECT BUDGET PROGRAM/PROJECT: INCREASING WORKER SAFETY Fiscal Year: __2012______ EXPENSE $25 mil CASH FLOWS Year 2: $5 mil Year 3: $10 mil Year 4: $15 mil Year 5: $12 mil Business Overview Ford Motor Company is known for its vehicles and...

Critical path method, Finance, Ford Motor Company 761  Words | 4  Pages

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Investment decisions

Investment decisions: Low Calorie Microwavable food Course name: Course no. Date: Instructor’s name:   The demand function for low calorie microwavable food depends on the price of the good, its competitive good, advertisement expenditure and income of the consumer. From the demand function and the elasticities calculated, it is found that the market for the low calorie microwavable food belongs to a monopolistically competitive market. A monopolistic competitive...

Cost, Economics, Elasticity 1752  Words | 7  Pages

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recruitment and appraisal

THE WAY FORWARD TO RECRUITMENT AND APPRAISAL SYSTEM IN NIGERIA AND NIGERIA ORGANIZATIONS RECRUITMENT It  refers to the process of attracting, screening, selecting, and on boarding a qualified person for a job. At the strategic level it may involve the development of an employer brand which includes an "employee offering". The stages of the recruitment process include: job analysis and developing some person specification; the sourcing of candidates by networking, advertising, and other search...

Employment, Employment agency, Human resource management 1701  Words | 6  Pages

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Project Appraisal , Human Resourse

SMALL BUSINESS MANAGEMENT LESSON 20 PROJECT APPRAISAL Learning Objectives Definition • Scope of appraisal • Steps followed in project appraisal Project appraisal can be defined as the promoter taking a second look critically and carefully at a project as presented by the promoter person who is in way involved in or connected with its preparation and who is as such able to take an independent, dispassionate and objective view of the project in its totality as also in respect of...

Cost, Cost-benefit analysis, Economics 5864  Words | 28  Pages

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Net Present Value

for investments that have got strategic implications. * There are various reasons for the use of open approach. Since the outcomes of these projects are highly unforeseen, according one interviewee, the application of quantitative tools is not plausible. Therefore, companies tend to apply the rule of thumb methods rather than standardized quantitative models. The justification for not applying quantitative models is some times attributed to the nature of a project. Capital inv appraisal of...

Capital budgeting, Cash flow, Discounted cash flow 1947  Words | 7  Pages

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Business Case for Investment

Business Case for Investment Business Case for Investment Learning Team A has been assigned to put together research, facts, and supporting documentation for how an organization should consider, plan for, and implement new technology within the business. The paper will examine different technologies that are available to existing businesses and whether it is worth the effort, time, planning, training, and mostly importantly cost, for the organization to implement any of these new technologies...

Application software, Computer, Computer software 2337  Words | 7  Pages

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