What Factors Should Be Considered in Investment Appraisal?
Several factors must be considered during the investment appraisal process:
Market Conditions: Analyze the market demand, competition, and economic environment. Cost Estimates: Accurately estimate the initial and ongoing costs associated with the investment. Cash Flow Projections: Forecast the expected cash inflows and outflows over the project's life. Risk Analysis: Assess potential risks and uncertainties that could impact the project's success. Strategic Fit: Ensure the investment aligns with the company's long-term goals and objectives.