Investment appraisal basically is a decision making process about investment. whether an investment is to be made in a particular project or not.
Types of Investment appraisal
Types of investment appraisal sometime also refer as technique of investment appraisal . There are following important types of investment appraisal.
- Pay back
- Return on capital Employed
- Net Present Value
- Internal Rate of Return
- The amount of period is required to recover the initial investments
Advantages of Pay back Technique
- Easy to calculate
- useful technique for high risk projects
Return on Capital Employed -it takes into account the profit
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