Investment appraisal Key Terms

quantitative analysis

quantitative analysis is a Business concept used to analyse Calculate and interpret payback, average rate of return and net present value.. A strong answer defines it, applies it to a named business context and explains the commercial consequence.

Assessing investment options

Assessing investment options should be judged by linking it to objectives such as profit, survival, growth, competitiveness, efficiency or customer satisfaction.

payback

payback affects stakeholders differently, so analysis should consider owners, managers, employees, customers, suppliers or investors before reaching a judgement.

net present value

net present value has a financial impact when it changes costs, revenue, profit, cash flow, investment return, break-even output or ratio interpretation.

quantitative analysis decision

quantitative analysis decision becomes evaluative when advantages, disadvantages, risk, opportunity cost and business context are weighed rather than listed separately.

financial decision-making

financial decision-making is a Business concept used to analyse Evaluate investment decisions using investment criteria, non-financial factors, risk and uncertainty.. A strong answer defines it, applies it to a named business context and explains the commercial consequence.

Assessing investment options

Assessing investment options should be judged by linking it to objectives such as profit, survival, growth, competitiveness, efficiency or customer satisfaction.

risk

risk affects stakeholders differently, so analysis should consider owners, managers, employees, customers, suppliers or investors before reaching a judgement.

financial decision-making decision

financial decision-making decision has a financial impact when it changes costs, revenue, profit, cash flow, investment return, break-even output or ratio interpretation.

financial decision-making stakeholder impact

financial decision-making stakeholder impact becomes evaluative when advantages, disadvantages, risk, opportunity cost and business context are weighed rather than listed separately.