Investment appraisal and Model: Difference between pages

Revision as of 22:39, 3 June 2016

A representation of a real situation using a selected set of simplifying assumptions and relationships.

In finance, financial models are widely used as tools for valuation and to support financial decisions.

An important benefit of well-structured financial models is to facilitate sensitivity analysis.

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+A representation of a real situation using a selected set of simplifying assumptions and relationships.
-Investment appraisal is the process of determining whether an expected return is sufficient to justify the investment required to achieve that return, given the risk and the time delay associated with the expected return.
+In finance, financial models are widely used as tools for valuation and to support financial decisions.
+An important benefit of well-structured financial models is to facilitate sensitivity analysis.
-.
-Investment appraisal can also refer to a more comprehensive process of analysis and decision making about potential investments including - but broader than - the quantified analysis in 1. above.
 == See also ==
-* [[Discounted cash flow]]
+* [[Business model]]
-* [[Internal rate of return]]
+* [[Decision tree]]
-* [[Investment]]
+* [[Financial model]]
-* [[Net present value]]
+* [[Model risk]]
-* [[Payback]]
+* [[Modelling]]
-* [[Present value]]
+* [[Mostly positive]]
-* [[Return]]
+* [[Scenario analysis]]
-* [[Return on capital employed]]
+* [[Sensitivity analysis]]
-* [[Time value of money]]
+* [[Stress test]]
-[[Category:Corporate_finance]]