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Selection Approach - Investment Appraisal Methods

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Discuss the merits and demerits of various investment appraisal methods and analyse the selection approach to be adopted when taking a new investment into consideration?
Solution
It is clear that there are many methods available for investment appraisal to the management. However, the choice of these methods depends on a number of factors, including the size of the firm, the investment required, the life of the project (period) and so on. This solution focuses on the merits and demerits of the various investment appraisal methods and also the cases where they cannot be applied, thus throwing light on the selection approach to the management.
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