Question
1. If you were a Director of a public listed company and had to present a significantly high value capital expenditure proposal to the CEO,
1.If you were a Director of a public listed company and had to present a significantly high value capital expenditure proposal to the CEO, how would you critically evaluate investment appraisal techniques that remain important when seeking an approval from the CEO.
Any capital expenditure involves protecting shareholder interests & maintaining a careful balance between risk and rewards, using the concept of 'time value of money', to study the impact of choices between discounted cash flows and non-discounted cash flow methods. Therefore, conduct a discounted and non-discounted cash flow analysis.
You are required to apply necessary knowledge and understanding to evaluate at least two popular investment appraisal techniques that can be used & considered by managers/decision-makers in the light of dynamic business & economic conditions
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