Investment Appraisal Methods

Investment Appraisal Methods are valuable tools for corporate decision-making”. Based on peer-reviewed academic sources, discuss two empirical studies that investigate the use of investment appraisal methods for supporting investment decisions at the corporate level. Your discussion should cover the following points:

1. a) Explain the research question(s) that the studies are aiming to answer;
2. b) For each study, describe the samples used and the methodology adopted to collect the data;
3. c) Describe and draw comparisons between the results of the two studies. Based on these results, discuss why corporate managers might more often use some appraisal methods rather than others when making investment choices.

Assessment criteria

Successful candidates should demonstrate their learning by:

• Critically discussing the importance of investment appraisal methods for corporate decision making and by analysing the research questions drawn from each of the empirical studies
• Accurately describing the sample and methodology used in the selected studies
• Effectively analysing the studies’ results and critically discussing the selection of investment appraisal methods by corporate managers in a real-life context
• Accessing reference materials and referencing information they have learned about to an appropriate source.
• Using written language that is clear, accurate and appropriate to the task.