## 3.2 Investment appraisal - notes

### Introduction

In the previous section we looked at sources of finance and their suitability. We now move on to look at investment appraisal.

By the end of this section you should be able to:

- Calculate the payback period and ARR for an investment
- Analyse the results of the calculations

- Calculate the NPV for an investment
- Analyse the results of the calculations