Using appropriate project appraisal techniques assess and demonstrate
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Using appropriate project appraisal techniques assess and demonstrate


REQUIRED:

a) Using appropriate project appraisal techniques assess and demonstrate the financial viability of each project. (AC 3.3)

b) Evaluate the methods of investment appraisal completed in part (a).Recommend the most appropriate project for the business. (AC 3.3)

This provides evidence for LO3 Assessment Criteria 3.3

Distinction Task

To achieve a Distinction your written work must also evaluate the benefits of management accounting techniques in supporting financial decision making to ensure long term financial stability. (AC 3D1)

Hint
Accounts and Finance" The Net Present Value in capital budgeting is used to assess the profitability of projects. It is obtained by taking the difference between the present value of cash inflows and the present value of cash outflows over a period. It helps establish the projects with the greatest profits.Net Present Value = (Cash flows) / (1+r)iwhere,i= initial investmentCash flows= cash flows i...

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