Capital investment appraisal

Chapter specific web links

Give me an example 16.1

Please click here to find the full annual report and accounts for 2019 from Rio Tinto:

https://www.riotinto.com/invest/reports/annual-report

The excerpt in this example can be found on Pg. 24 under the heading ‘Forward plan’.

Give me an example 16.2

Download the full reports and accounts report for Jan 2019 from Next plc here:

https://www.nextplc.co.uk/~/media/Files/N/Next-PLC-V2/documents/2019/annual-report-and-accounts-jan19.pdf

Page 23 presents details of how this company evaluates the performance of investment in new space.

Give me an example 16.3

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Give me an example 16.4

The full 2014 annual report from GSK can be found here:

https://www.gsk.com/media/2711/annual-report-2014.pdf

The extracts which are used in this example can be found on Pgs. 27 and 68.

Further reading

FAO Corporate Document Repository: Basic Finance for Marketers: Chapter 6: - Investment decisions - Capital budgeting available at http://www.fao.org/docrep/w4343e/w4343e07.htm

Denzil Watson and Anthony Head, Corporate Finance: Principles and Practice, 8th Edition, Prentice Hall, 2019, Chapters 6 and 7.

Glen Arnold, Essentials of Corporate Financial Management, 2nd Edition, Prentice Hall, 2013, Chapter 2.

Paul M Collier, Accounting for Managers: Interpreting Accounting Information for Decision Making, 5th Edition, Wiley, 2015, Chapter 14.