Investment Appraisal Techniques And Their Applications By Finance/ Investment Houses

ABSTRACT: Events over the years have shown that investors present and potential wants to invest their funds in anticipation of good future returns INVESTMENT APPRAISAL TECHNIQUES and its resultant making of decision is critical to all investors (both institutional and individual investors) aspiring to expand their investment income. The purpose of this write up arose from the need to determine whether:

• The theoretical investment evaluation techniques are being adopted by investment analysis in the appraisal of real life capital project
• The net present value (NPV) criterion is widely accepted at the most reliable evaluation technique by investment analysts.
• Investment decision advice seekers are to further bring to light the theory and practice of decision-making criteria to the knowledge of students investors (present and potential) analyst.

On the basis of the foregoing this research work was centered on investment/ finance house, which is a sub-sector of the finance. And most of research works were carried out in the case study of Union Bank PLC Enugu Urban.

TABLE OF CONTENT

CHAPTER ONE

1.0     Introduction/ background of study

1. The investment finance house (company)
2. Purpose of study
3. Research questions
4. Statement of hypothesis
5. Scope and limitation of study
6. Concise history of G.I.W.A
7. Definition of term.

CHAPTER TWO

2.0     Review of related literature

1. Definition nature and concept of investment decision
2. Importance and type of investment decision
3. The concept of investment appraisal
4. Investment appraisal techniques
5. Evaluation of the N.P.V method.

CHAPTER THREE

3.0     Research method and design

1. Method and sources of data
2. Research population
3. Sampling methods used
4. Questionnaires

CHAPTER FOUR

4.0     Data presentation analysis and interpretations

1. Presentation and analysis of data from questionnaire
2. Test of hypothesis
3. Interpretation of data

CHAPTER FIVE

5.0     Summary

1. Conclusion

Recommendation

Bibliography

Appendix A

Appendix B

CHAPTER ONE

1.0     INTRODUCTION BACKGROUND OF STUDY

The efficient allocation of capital is the most important finance function in modern time. It involves decision to commit a firm’s fund to the long-term assets. Such decision are of considerable importance to a firm or business organization since they tend to determine value and size by influencing its growth profitability and risk.

Investment appraisal as it is sometimes called is a means of assessing whether capital expended on (or allocated to) a project would show a satisfactory rate of return to an undertaking either absolutely or when compared with expenditure on alternative project and of indicating the optimum time to invest. To be above to give an efficient decision on investment profitability the analysts would require stick come in the evaluation process.