The purpose of this competency is to achieve the goals of investment appraisal, i.e. to:
- assess the viability of achieving the objectives;
- support the production of a business case.
You must be able to:
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It may be that investment appraisal is normally performed before the management team is formed. They then only need to understand and review the appraisal.
In some environments the investment appraisal may have regulatory or statutory implications that are significant enough to need specific reference in the performance criteria.
Additional knowledge requirements may be added to cover specific techniques, particularly where more sophisticated appraisal (e.g. Environmental Impact Analysis) or industry specific approaches are required.
Knowledge and understanding
You need to know and understand: