Introduction to Investment Appraisal

The video introduces investment appraisals, emphasizing the need for businesses to make informed investment decisions to maintain competitiveness and align with strategic goals. It discusses the challenges of investing in technology, the risks and uncertainties involved, and the importance of financial resources. The video explains investment appraisal techniques like payback period, average rate of return, and net present value, highlighting their advantages and disadvantages.

What are the risks and uncertainties associated with investment projects?

What is the average rate of return and how is it calculated?

Explain the concept of net present value and its importance in investment appraisal.