This article discusses various investment appraisal techniques like NPV, IRR, Payback period, Accounting rate of return, discounted cash flow methods and their limitations. It highlights the challenges faced by management while estimating future cash flows, duration of cash flows, contradictory results from different techniques, and ignoring unexpected events.

Different methods used to appraise an investment and their potential flaws which could lead to inaccurate estimations.

Investment Appraisal Techniques and their Limitations - Desklib

Investment Appraisal Techniques and their Limitations

Understand the different investment appraisal techniques like NPV, IRR, Payback period, ARR, discounted cash flow methods and their limitations. These techniques help management to decide about investing in Projects however these techniques have certain limitations.

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This document provides an overview of different investment appraisal techniques such as payback period, accounting rate of return, net present value, and internal rate of return. It includes calculations and analysis for each technique and concludes with a recommendation for Dolapo Plc. The document also discusses the advantages and disadvantages of each technique.

University of Jaffna

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This document provides an overview of the principles of financial investments and their importance in making effective investment decisions. It covers topics such as payback period, net present value (NPV), internal rate of return (IRR), and strengths and weaknesses of investment techniques. The document also includes calculations and explanations for a new project and expected return on risk assets.

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This article discusses capital budgeting and business valuation for FIN 505 – FALL 2018. It covers topics such as payback period, net present value, internal rate of return, cost of capital, free cash flow, terminal value, enterprise value, and share price.

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Capital Budgeting and Business Valuation: FIN 505 – FALL 2018

This article covers topics related to Managerial Accounting such as NPV, IRR, Payback Period and Investment Decisions. It includes solved examples and references.

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This document provides a detailed analysis of financial ratios for Tesco. It covers ratios like gross margin, current ratio, quick ratio, debt to equity ratio, total debt to total assets, asset turnover, and inventory turnover. The analysis helps in understanding the financial performance of the company.

Investment Appraisal Techniques and their Limitations

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