the method of investment appraisal which may be applied to evaluated and rank potential investment

Table content

Introduction………………………………………………………………………………2

I-Analysis of the reasons behind takeovers and the methods by which such takeovers may

have take place together with the potential effects of a takeover………………………...3

II- The method of investment appraisal which may be applied to evaluated and rank

potential investment opportunities and their relative merits and limitations……………..7

1-Payback period………………………………………………………………………….7

2-Accounting rate of return……………………………………………………………….8

3-Net present value………………………………………………………………………..9

4- Internal rate of return………………………………………………………………….10

III- The nature of gearing and the potential effects of high gearing on perceived risk and

cost of capital…………………………………………………………………………….12

IV- Conclusion…………………………………………………………………………...13

Appendix…………………………………………………………………………………14

Reference………………………………………………………………………………...17

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