Agenda
You'll learn the four key investment appraisal techniques used in business decision-making: payback period, return on capital employed, net present value, and internal rate of return.
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In this lesson
- 0:00 Investment appraisal techniques overview
- 0:12 Relevant costing in investment decisions
- 0:16 Payback period and discounted payback
- 0:30 Return on capital employed calculation
- 0:38 Net present value and decision making
- 0:54 Internal rate of return explained
About this lesson
This session reintroduces relevant costing in the context of investment appraisal, then walks you through each technique with worked examples and illustrations. You'll understand how to calculate each method, interpret positive and negative net present value, and apply these tools to evaluate whether an investment should proceed. This is essential knowledge for FM, APM, and Strategic Business Leader papers where investment decisions are a core activity.
Duration: 1m
Transcript
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