The Financial Appraisal Profile Model

by Lefley, Frank; Ryan, Bob

• ISBN13: 9781403947529
• ISBN10: 140394752X
• Format: Hardcover
• Copyright: 2005-07-22
• Publisher: Palgrave Macmillan

Summary

This book describes an integrated capital appraisal procedure that is commanding increasing attention in the academic world, industry, commerce and the professions. Formal techniques are widely used for the analysis of capital projects but are limited by their scope and by the difficulty in interpreting the significance of the results they produce. The FAP model overcomes these difficulties by creating an integrated process for the appraisal of the financial and strategic benefits of new project proposals and for the assessment of risk.

Author Biography

Frank Lefley is an Honorary Research Associate at Royal Holloway, University of London. Bob Ryan holds the Chair in Financial Management at the University of Gloucestershire and is an Honorary Professor of the University of London.

Table of Contents

Foreword	vi
Acknowledgements	vii
List of Tables and Figures	ix
List of Abbreviations	xi
The Financial Appraisal Profile (FAP) Model	1	(22)
The Development of the Financial Appraisal Profile (FAP) Model	23	(12)
The FAP Model -- Basic Data	35	(9)
The FAP Model -- The Net Present Value Profile (NPVP)	44	(13)
The FAP Model -- The Project Risk Profile (PRP)	57	(16)
The FAP Model -- The Strategic Index (SI)	73	(17)
Summary Comments on the FAP Model	90	(9)
Case Study -- Applying the FAP Model	99	(15)
The First Stage in the Empirical/Pragmatic Evaluation of the FAP Model -- Presentations	114	(27)
The Second Stage in the Empirical/Pragmatic Evaluation of the FAP Model -- A Case Study in Acceptability	141	(30)
Appendix 1 The Accounting Rate of Return (ARR)	171	(5)
Appendix 2 Calculating the Modified Internal Rate of Return (MIRR) from the Net Present Value (NPV)	176	(5)
Index	181