Investment appraisal (prototype) INVA

(new)

Identifying the attractiveness of an investment – assess the viability, benefits of an investment

Guidance notes

(new)

Activities may include - but are not limited too..

  • Selecting and using appropriate techniques to compare financial investments and returns
  • Using recognised investment appraisal techniques to compare investment and returns include payback period, accounting rate of return, discounted cash flow (net present value and internal rate of return),
  • Collecting data using appropriate top down or bottom up approaches
  • Including other factors into the appraisal approach - such as legal considerations, environmental or social impact, operational benefits, risk
  • Developing scoring methods to allow for subjective benefits or dis-benefits and to aggregate the results of multiple appraisal methods to help compare options
  • Establishes investment appraisal as a tool for selecting projects/initiatives for further investigation.
  • Identifies the possible sources of funding and the impact on the investment appraisal

Investment appraisal (prototype): Level 6

(new)

Develops organisational policies, standards, and guidelines for investment appraisals. Leads activities to establish consistent appraisal across the component projects and programmes within a portfolio. Reviews investment appraisals for high value initiatives to assure their quality. Leads investment appraisal activity for complex programmes of work and portfolios.

Investment appraisal (prototype): Level 5

(new)

Advises on investment appraisal approaches and tailors organisational standards to the context of portfolios/programmes. Leads investment appraisal activity for simple portfolios and programmes and complex projects.

Investment appraisal (prototype): Level 4

(new)

Identifies suitable appraisal techniques based on the characteristics of a project. Collects the required information in collaboration with project stakeholders.