Qualitative investment appraisal involves the assessment of investments based on subjective factors such as quality of management, brand reputation, and market demand. It relies on expert judgment and is less objective. On the other hand, quantitative investment appraisal involves the use of measurable data such as financial ratios, discounted cash flow analysis, and payback period. It provides a numerical result that can be compared across different investment options and is more objective.
Technical appraisal of a project management requires examining if the project fulfills the task and how well it fulfills the task. This is a qualitative and quantitative approach.
In payback period of investment appraisal method all cash inflows and outflows are analysed and find out that in how many years investment proposal will earn the invested money.
potential appraisal is not performance appraisal. similarly performance appraisal is not potential appraisal.
features of a sound appraisal investment technique
The Payback method is one of the investment appraisal methods. Other methods to appraise investments are the Average Rate of Return and the Net Present Value method.
Assuming that the question relates to an investment appraisal, feasibility looks mainly at the profitability of the project, and viability looks at the likelihood of survival.
Kenneth McConville has written: 'Appraising an investment appraisal' 'Appraising an economic appraisal'
the Difference can be explained by an example.There is a belief among the employess that they have appraisal. Employees trust that there is a appraisal.
IRR, NPV, DCF are the main Investmetn Appraisal Techniques.
Rob Dixon has written: 'Venture capitalists and investment appraisal'
Payback period is the time in which the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment. It is one of the simplest investment appraisal techniques.
Chen Choy Loh has written: 'Capital investment appraisal'