Assignment on Business Finance 2022

Running Head: BUSINESS FINANCE
BUSINESS FINANCE
Name of the Student
Name of the University
Author Note

1BUSINESS FINANCE
Table of Contents
Business Finance........................................................................................................................2
Reference....................................................................................................................................8

2BUSINESS FINANCE
Business Finance
Business finance involves all those activities of the business that is concerned with
acquisition as well as conservation of the capital funds for meeting the overall financial needs
and the objectives of the business organization. The contribution of the capital by the
businessperson for establishing the business is not adequate for meeting the financial needs of
the organization (Vesty, Telgenkamp and Roscoe 2015). Hence, under this assignment
discussion will be based on the different methods of the investment appraisal as well as
suitability of these methods in the ever-changing environment of business. Moreover,
discussion will be done on whether these techniques are able for meeting the needs of both
the investors as well as the wider community of stakeholders.
Investment Appraisal
Investment appraisal is referred as the collection of the techniques that is being used
for identifying the attractiveness of the investment. Investment appraisal has the purpose for
assessing the viability of the project, programs or the portfolio decisions as well as the value
that is generated. The investment appraisal has the primary objective for placing the value on
the benefits for the justification of the costs. It generally involves choosing the projects,
which adds the value to the company. The process of investment appraisal involves
acquisition of land or purchasing of the fixed assets such as machinery or new truck (Wnuk-
Pel 2014). The business organizations are generally required or being recommended for
undertaking those projects, which helps in increasing the profitability as well as enhancing
the wealth of the shareholders. The rate of return is acceptable or unacceptable is mainly
influenced by many other factors that are project or company specific such as the project of
social or charitable are not approved based on rate of return but it is approved based on
business desire to foster goodwill and contributing back to their community. Investment