Improving the accuracy of investment appraisal can lead to better decision-making:
Sensitivity Analysis: Evaluate how changes in key assumptions impact the project's outcomes. Scenario Analysis: Assess the project's performance under different scenarios, such as best-case and worst-case. Consult Experts: Seek input from financial analysts, industry experts, and other stakeholders. Use Technology: Leverage advanced software tools for more accurate financial modeling and analysis. Continuous Monitoring: Regularly review and update the investment appraisal to reflect changing conditions.