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3.3.1 Quantitative sales forecasting & 3.3.2 Investment appraisal Categorise
Target Level
C
Running Total
0
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Attempt
1 of 2
Click on an item, then click on a category to place it. Or, drag and drop the item into the correct category. Organise all items before clicking 'Check'.
PAYBACK
ARR
NPV
Considers the profitability of investments
Forecasts the time period when the investment can be recouped
Results can be compared to savings accounts %
This method uses a discount table
Simplest method of investment appraisal
Takes into account the value of money in the future
Indicates the average rate of return on projects
Shows cost of investment divided by cash flow
Projects with shorter repayment periods are more attractive
Expressed as a %
Most complex investment appraisal method
Calculates in years and months when the investment is paid back