L3 · Required

Capital investment appraisal

Use capital investment appraisal to make decisions inspectable.

What you should be able to do

Independently: Compare cash flow, present value and sensitivity in a fictional project.

Suggested prerequisites

A short guide

Use capital investment appraisal to make decisions inspectable. Compare cash flow, present value and sensitivity in a fictional project. Read the indicated source section, identify its key concepts and conditions, and work through the example. Record inputs, sources, units and assumptions. Keep your method separate from the result, mark unanswered questions, and review the output against the checklist.

An example

Initial outlay and later cash flows need one consistent timeline.

Your task

Compare cash flow, present value and sensitivity in a fictional project.

Start with this source

Read the indicated section relevant to capital investment appraisal and complete the applied task.

This source is awaiting renewed review. Try the task above and adjacent skills; reviewed sources will appear here.

Your learning checklist

Required items: 0 / 10 completed or already known

Device storage

Next: Read a role through its responsibilities

Checklist statuses are self-reported; exercise scores are recorded separately. You can reset any item.

Self-check

Try a practice set

Calculations and choices receive immediate checks. Review open responses yourself against the rubric. All examples are educational.

1. Price is 50 and variable cost per unit 30. Contribution per unit?
2. What is essential in a monthly cash forecast?
3. After the capital investment appraisal task, state one assumption, one supporting fact and one condition that would change your conclusion.