Manifold Options in Order to Expand Overseas - Essay Example

Assess the various methods that could be used by an organization in order to expand overseas In contemporary world organizations have manifold options in order to expand overseas. The various options are discussed below with their relative pros and cons. 1. Franchising: an organization can expand overseas by opening its franchises in the foreign land. Franchising can only prove to be a successful strategy for overseas expansion if the organization is well renowned in its homeland and is doing business for a long time. A well reputed business will attract a vast pool of franchisees in the foreign land as brand recognition is one of the key advantages that every franchisee is keen to get from a franchise contract. Through franchising an organization can avoid many of the start up problems that it can face in a new country. By having a local person as a franchisee in order to sell its products the organization will be able to gain trust of the people of the new country and it will not feel alienated in a foreign land. Moreover the franchisee may guide the organization to gain recognition in its new market by applying specifically those marketing techniques that correspond to the taste of the general public. Additionally the organization will have a promising return in shape of royalty fees. But franchising also entails some drawbacks as an overseas expansion strategy. Firstly, the organization will face cultural barriers especially the language barrier (if the language of the home country and foreign country are different) while finding a suitable franchisee and then initiating its operations in a new territory. Secondly, the organization personals have to visit the foreign country, and most probably stay there for some time, in order to acquaint themselves with the ground realities and assist the initiation of operations. Thirdly, heavy capital investment will be needed in order to install machineries in new place. Lastly, the organization has to constantly inspect the franchisee operations in order to ensure quality consistency which is the essential characteristic of any franchise. 2. Licensing: licensing can be comparatively a safe mode of expanding overseas in which an organization (the licensor) permits the company (the licensee) in a target market to use its property which is usually intangible e.g. patents, trademarks and production techniques (Quick MBA n.d.). Licensing reduces risk as the licensor produces and markets the product while licensor receives the license fee. Moreover licensor can get a higher ROI because of its minimum investment. Furthermore licensing is an effective tool to avoid the trade barriers and helps the organization to develop its brand name by familiarizing itself in the foreign country through licensing. But licensing is not without its drawbacks. The licensor does not get mega brand recognition in the new territory because it is not producing the producing but merely extending its name/label to the product. Even more there is a potential danger of knowledge spillovers and licensee may become a competitor in future once the license time period is over. 3. Joint Venture: joint ventures can be defined as "an enterprise in which two or more investors share ownership and control over property rights and operation" (Market Entry Strategies n.d.).While joint venture facilitates the sharing of technology and work load it also ensures financial strength. Joint venture entails medium level of control as both the organizations in it work at the same level and there is no one boss who can dictate the working of joint venture rather it is more about mutual cooperation. It is a very suitable way of entering in a foreign market when the organization wants to create a synergy by combining two teams that have distinct skills and when combined together can produce outstanding results. Joint venture can prove to be an inappropriate way of entering in a new market when the partners in a joint venture can be potential competitors and have same line of products. In these cases join venture will have conflicting aims as on one hand the partners will strive to make the joint venture a success, on the other hand they will also try to bout perform each other and may harm the venture by competing with each other. 4. Foreign Direct Investment (FDI): FDI facilitates the maximum control of an organization in overseas expansion. An organization expands through FDI when it transfers its key personals, resources and technology in the foreign country. Contrary to franchising, licensing and joint venture, in FDI, the organization establishes an independent set up without the direct assistance of any one in the new country. An organization can execute FDI either by the acquisition of an existing business overseas or by establishing a foreign subsidiary of its own organization there. FDI gives the organization to apply its specialized skills fully and also provides a wider span of control. It also gives the organization an opportunity to closely study its market and respond accordingly rather than being dependent on third party analysis. While minimizing knowledge spillovers and eliminating profit sharing through FDI, organization can also get favors from the foreign government as organization opens new channels for employment and technology injection. But FDI also entails greater risk as new market may not accept a stranger readily. In addition, FDI requires huge investments in terms of capital and personals. Moreover organization can face manifold problems in adjusting in the new culture and communicating with the diversified workforce. 5. Exporting: exporting can be an effective way of expanding overseas. An organization can opt for direct or indirect exporting depending on its strategy and resources. In direct exporting the organization directly arrange the selling of its product in the foreign land. While in indirect exporting the organization reaches the overseas market through intermediaries such as export management houses, trading companies etc. Exporting serves as the initial step in overseas expansion-an organization can analyze the foreign market response towards its products and can then consider more direct forms of overseas expansion such as franchising or FDI. But on the other hand exporting provides limited exposure to the organization for understanding its foreign market fully. As presence of organization in the new territory is not as strong and as direct in exporting as it would have been through other means of expansion e.g. franchising, FDI, joint venture. These are the various ways of expanding that could be used for an organization in for overseas expansion. There is no one best method for overseas expansion. Each method has its own pros and cons and organization should choose a method that best suits its strategy and correspond to its resources. Bibliography Global Business Strategy (n.d.) [Online]. Accessed on 6th, May, 2011. Available from World WideWeb:http://zuggs.net/hsc/Bus/Topic%205_Unit2.pdf Market Entry Strategies (n.d.) [Online]. Accessed on 8th, May, 2011. Available from World WideWeb:http://www.fao.org/docrep/W5973E/w5973e0b.htm Modes of Entry into International Markets (n.d.) [Online]. Accessed on 8th, May, 2011. Available from World WideWeb:http://www.marketingteacher.com/lesson-store/lesson-international-modes-of-entry.html Pipe, K. (n.d.). Why Franchising is going Global [Online]. Accessed on 6th, May, 2011. Available from World WideWeb:http://www.franchising.com/howtofranchiseguide/why_franchising_is_going_global.html Quick MBA (n.d.). Foreign Market Entry Modes [Online]. Accessed on 8th, May, 2011. Available from World Wide Web: http://www.quickmba.com/strategy/global/marketentry/ Slastnikov, V.A. (2010) Pros and Cons of Business Models [Online]. Accessed on 6th, May, 2011. Available from World WideWeb: http://www.slideshare.net/digitizergroup/part-seven-pros-and-cons-of-franchising-model Zahorsky, D. (n.d.). Pros & Cons of Buying A Franchise [Online]. Accessed on 6th, May, 2011. Available from World WideWeb:http://sbinformation.about.com/cs/bestpractices/a/aa011203a.htm 2. Discuss the different types of risk that can impact upon an organization trading on an international basis. Risk is any factor that can negatively impact the operations of a business. Risk can be minimized but it can never be eliminated. Every organization faces a certain level of risk and as the organization expands internationally the exposure to risk excavates even more. Different types of risks that can affect an organization trading on international basis are discussed as follows: Exchange Rate Risk: exchange rate risk can have a strong impact on internationally trading businesses. Fluctuations in the exchange rate of domestic currency and the foreign currency, in which the organization is trading, can raise serious implications for internationally trading businesses. E.g. if the domestic currency appreciates against the foreign currency then profits earned in foreign country will reduce considerably when the profits will be converted in domestic currency. Systematic Risk: this is the risk arising from the global economy. An internationally trading organization will have to bear the maximum shock from adverse global economic conditions. Avoidance of systematic risk is practically impossible as this risk has such a wide impact globally that no single organization can control it. Few of the examples of systematic risk are global financial shock, global economic meltdown, aging consumers and workforce, threat of increased competition from emerging markets and shift in consumer demands globally. Economic Risk: the economic condition of the foreign country with whom the organization is trading can influence the organization considerably. A declining FDI in the foreign country signals that the country may go into recession as foreign investors do not view the organization as favorable for investment. Moreover the monetary and fiscal policy of the foreign country will affect the purchasing power of consumers and thus, in turn, will determine the demand of the organization’s product in the foreign land. Overall the economic policy of the foreign country and uncertainty associated with it is a potential risk faced by an organization that trades internationally. Political Risk: a country immersed in political turmoil is viewed as a risky investment. This is because political unrest signals an uncertain environment and sudden change in government policies is expected. This definitely poses a serious threat to the organization as changes in government policies will lead to a revision of planned contracts which is not a highly desired scenario. Frequent changes in government policies will also lead to changes in tax policies and trading policies which will further increase the uncertainty and will make trading as a risky job. Terrorism Risk: Cultural, political or religious differences between host and home country can lead to widespread hatred for the organization among the citizens of host country. As Okolo, S (n.d.) explains that in order to show retaliation the host country citizens can damage the organization’s product or can block the route through which the organization’s products reach the host country. E.g. due to differences with U.S.A and NATO, the logistic support of NATO tankers to Afghanistan is often interrupted by the local people of Pakistan. If a U.S based business is exporting its products to Afghanistan via Pakistan it can also face the same threats. Therefore while deciding a country for trade the organization must assure that the host and home countries are on friendly terms consistently and the channel used to place the product in the host country is safe. These are the various types of risks faced by a business that trades on internationally basis. These risks can be mitigated through detailed risk assessment and then formulating an appropriate response to them. Bibliography Clark, E. (n.d.). Managing Risk in International Business [Online]. Accessed on 6th, May, 2011. Available from World WideWeb:www.countrymetrics.com/pp/GARP2001.ppt Investopedia (n.d.).[Online]. Accessed on 7h, May, 2011. Available from World WideWeb:http://www.investopedia.com/ask/answers/06/internationalfinancerisks.asp Okolo, S. (n.d.). Risks in International Business [Online]. Accessed on 7th, May, 2011. Available from World WideWeb:http://ezinearticles.com/?Risks-in-International-Business&id=1331702 Strategic Business Risk 2008 — The Top 10 Risks for Global Business (2008). [Online]. Accessed on 6th, May, 2011. Available from World WideWeb:http://www.asiaing.com/strategic-business-risk-2008-the-top-10-risks-for-global-business.html Types of Market Risk (n.d.)[Online]. Accessed on 7th, May, 2011. Available from World WideWeb:http://www.scribd.com/doc/390967/Notes-on-Types-of-Risk 3. Discuss the factors that influence the amount of exchange rate ‘exposure’ for any organization. Exchange rate exposure is the risk associated with uncertain exchange rate. It explains that how the change in exchange rate affect the value of an organization. Exchange rate exposure is of vital importance for an organization, especially the ones trading internationally. Factors that can impact the exchange rate exposure of an organization can be bifurcated as firm specific and country specific-each of them is discussed in detail as follows: Firm Specific These are the factors that particularly affect the exchange rate exposure of an organization due to organization‘s own specific characteristics. The amount of exchange rate exposure can be varied by changing these characteristics of the organization. 1. Size of the organization: a relatively small firm, which is trading across borders, has a higher amount of exchange rate exposure as compared to a large firm. This is because small organization is less diversified and is not trading world over on a large scale. Therefore when the exchange rate between the domestic and foreign currency fluctuates, a small organization faces the larger brunt of the shock. While, on the other hand, a large firm will be able to minimize negative impact of exchange rate exposure because it is trading on with various countries at a time and fluctuation in the exchange rate of just one country may not impact is forcefully. 2. Net importer or net exporter: an organization is said to be net importer if it generates majority of its revenue through importing goods. While if an organization’s main source of earning is through exporting goods it is termed as net exporter. An organization that is net importer faces lower amount of exchange rate exposure as compared to a net exporter organization. The reason being that a importers are relatively in stronger position in a market than exporters. The rise in the prices due to exchange rate fluctuation can often be passed to consumers by an importer. On the contrary an exporter cannot transfer the cost of rising prices to consumers because it has to remain competitive and does not enjoy the privilege of uniqueness of products that an importer has in a domestic country. Country Specific Country specific factors affect the exchange rate between two countries which consequently impact the organizations trading between the two countries. These factors indirectly affect the exchange rate exposure of an organization and few of these important factors are discussed below: 1. Relative rates of inflation: country that comparatively faces a higher rate of inflation than the other country will soon experience a depreciation of its currency against the other country’s currency. This is because higher inflation reduces the purchasing power of consumers and the traders are therefore less likely to invest in a country where overall demand is plunging. This in turn reduces the demand of country’s currency which leads to its depreciation. Thus an organization is bound to face larger amount of exchange rate exposure if the relative inflation rate of its home and host country are constantly fluctuating. 2. Comparative interest rate: a country with higher rate of interest will experience appreciation in its exchange rate against the country with lower interest rate. High rate of interest promises a greater return on lending the money. Therefore as the interest rate in a country soars, the demand for its currency increases in order to reap benefits of greater return on money. An organization will face higher exchange rate exposure if the interest rates of its home and host country are randomly changing. 3. Size and trend of the country’s balance of payment (BOP): a negative BOP will lead to depreciation of country’s currency. Negative BOP signals that country is spending more on imports than exports which implies that it is not viewed as a favorable country for investment. Moreover larger BOP also signifies rising inflation in future and probably more debts in order to recover deficit in BOP. All these factors together lead to a decrease in demand of country’s currency which depreciates it against other currency. Therefore if the trend of BOP of home or host country is going in deficit then an organization should be ready to face larger amount of exchange rate exposure. 4. Economic factors: the overall economic performance of the home and host country also determines the level of exchange rate exposure faced by an organization. A country that has positive macro economic indicators e.g. rising GDP growth rate, higher GDP to debt ratio, rising amount of foreign direct investment will be viewed as a favorable country for investment thus raising demand for the country’s currency which consequently appreciates the currency. Thus if general economic conditions of the home or host country are getting worse the organization should be prepared to handle larger amount of exchange rate exposure. These are some of the important factors that can leave a strong impact on the organization’s exchange rate exposure. Bibliography Berco, E. (2009) factors that affect foreign exchange rates [Online]. Accessed on 6th, May, 2011. Available from World Wide Web:http://e-articles.info/e/a/title/Factors-that-Affect-Foreign-Exchange-Rates/ Dominguez, K.M.E and Tesar, L.L (2005). Exchange Rate Exposure [Online]. Accessed on 6th, May, 2011. Available from World WideWeb: http://www-personal.umich.edu/~ltesar/pdf/JIE2005.pdf Factors which influence the exchange rate (n.d.) [Online]. Accessed on 6th, May, 2011. Available from World Wide Web: http://www.economicshelp.org/macroeconomics/exchangerate/factors-influencing.html International Exchange Rate (n.d.) [Online]. Accessed on 6th, May, 2011. Available from World WideWeb: http://www.inc.com/encyclopedia/international-exchange-rate.html Solakoglu, M.N. (n.d.) Exchange Rate Exposure and Firm-Specific Factors:Evidence from Turkey [Online]. Accessed on 6th, May, 2011. Available from World Wide Web: http://www.fatih.edu.tr/~jesr/jesr.solakoglu.exposure.pdf 4- Explain the term ‘hedging’ and evaluate the different techniques available to organizations to hedge against exchange rate risk. Hedging Investopedia (n.d.) defines hedge as “Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.” It is a method of reducing risk due to price fluctuations. An investor usually attempts to reduce risk due to price fluctuation through hedging. The basis technique for hedging is to invest in two different markets, both of which are expected to move in opposite directions in the future. So that a loss in one market is compensated by a gain in the other market, thus reducing the overall risk. Hedging refers to managing risk to an extent that makes it bearable (Meera n.d.) Techniques to hedge against exchange rate risk There are various techniques that can be used to hedge against exchange rate risk. A brief evaluation of each one of them is done as follows: Forward Contract: it is one of the earliest techniques for hedging against exchange rate risk. In order to prevent the adverse effects of exchange rate risk two parties enter into a contract where exchange rate and time for future transaction is fixed in advance. In this way exchange rate risk is minimized. But forward contract is not without its shortcomings. Firstly finding a party that would agree with the terms of the contract as prescribed by the organization is not easy. This is more like a coincidence of wants- where both the parties need similar terms of forward contract. In practical world this is a cumbersome process. Moreover on one side risk due to currency fluctuation is minimized, on the other side potential gains from favorable currency fluctuations are also blocked. In addition to that forward contracts do not a formal market like futures or options thus reducing their attraction. Futures Contract: in futures contract two parties agree to a complete a foreign currency transaction on a specified date in future at today’s exchange rate. Thus current exchange rate is locked for future transaction. But unlike forward contracts, future contracts do not involve the difficulty of finding a counter party that agrees with the organization’s terms of the contract. Future contracts are far more liquid than forward contracts and are traded on organized exchange market just like shares and they are standardized contracts. In order to hedge against currency appreciation an organization should buy a futures contract in order to lock current exchange rate for the future transaction. While in order to hedge against currency depreciation an organization should sell the futures contract in order to take benefit of today’s higher exchange rate. Options Contract: in options two parties-buyer and seller- indulge in an agreement whereby the buyer has the right to buy a specific amount of currency, on a specific date in future, from the seller at a pre-determined exchange rate. Unlike futures contract the buyer has no obligation of completing the transaction in future but rather he has a right whether or not to complete the contract on specified future date. Contrary to this the seller must complete the transaction if the buyer is willing to perform the contract in future. For giving this right to buyer the seller is duly compensated via premium. There are two kinds of options: Call option- here the buyer has the right to buy specific amount of currency before or at specific future date at specific exchange rate. Put option- here the buyer gets the right of selling a specific amount of currency before or at specific future date at predetermined exchange rate. Hedging through options is much more flexible than forward or futures contract. This is because it gives a choice to the buyer whether or not to perform the contract without obligating him to do so. If the conditions are such that practicing the options is beneficial the buyer can perform the options. While if the buyer faces a loss through options he can simply avoid the contract, thus minimizing the risk and increasing the flexibility. But increased flexibility often makes options more expensive than forward or futures contract. Borrowing in the same currency in which the organization has maximum amount of receivables: like forward, futures and options contract, borrowing in the same currency is not a technique to minimize exchange rate risk but rather it avoids the exchange rate risk. By borrowing in the same currency in which the organization has maximum amount of receivables the organization can avoid the foreign currency transaction and can easily pay debt once the receivables are recovered. Organization should try hard to avoid exchange rate risk as much as possible but when it is unavoidable it should opt for forward, futures or options contract. Hedging against exchange rate risk is of crucial importance for any organization. A sporadic exchange rate is bound to create manifold hurdles in the normal flow of the business and can also jeopardize the successful completion of organization’s strategic plans. If the above techniques are successfully implemented an organization can skillfully mitigate the exchange rate risk. Bibliography Gray, P. and Irwin, T. (2003) [Online]. Accessed on 6th, May, 2011. Available from World Wide http://rru.worldbank.org/Documents/PublicPolicyJournal/266Gray-121203.pdf Investopedia (n.d.) [Online]. Accessed on 6th, May, 2011. Available from World Wide http://www.investopedia.com/terms/h/hedge.asp Lammer,V.(2007) Conference on European Economic Intefration [Online]. Accessed on 6th, May, 2011. Available from World Wide http://docs.google.com/viewer?a=v&q=cache:o3lf8qVjCaoJ:www.oenb.at/de/img/ppp_lammer_tcm14-70101.pdf+hedging+exchange+rate+risk&hl=en&gl=pk&pid=bl&srcid=ADGEESjJfa1A1pVzpSz1oNRZa743sqrSWh-o8Y1xg_KLalP3XBEMBt9f2NIz-DIMxeqRceD-avU8p0Hd03ka1N4mi1b9sFVToSb08mi4-iEMJqlwE8tRxAfWxlk0biMX8cExdS9ZaEDV&sig=AHIEtbRaxX8QpoD7hRY8ngutDngWkNB5WA Meera, K.M Ahamed (n.d.) Hedging Foreign Exchange Risk with Forwards, Futures,Options and the Gold Dinar: A Comparison Note [Online]. Accessed on 6th, May, 2011. Available from World Wide Web:http://www.lariba.com/knowledge-center/articles/pdf/Malaysia%20-%20GOLD%20-%20Hedging%20With%20Dinar.pdf Understanding Futures Contract (2007) [Online]. Accessed on 6th, May, 2011. Available from World Wide http://www.futures-trading-mentor.com/futures-contracts.html The Multinational Finance Function (n.d.) [Online]. Accessed on 6th, May, 2011. Available from World Wide Web:http://docs.google.com/viewer?a=v&q=cache:smop_FURxREJ:drgeorgefahmy.com/labteachingtips/daniels19_im.doc+how+can+an+organization+hedge+against+the+exchange+rate+exposure&hl=en&gl=pk&pid=bl&srcid=ADGEESh1ymPzv-LbdwTNUrIFo46IOKaXm8yLCAysuUS3nxLYnZBFOmMTF0s7FbMJ4maT-YqnXCH2qfuy1WWJ-IwRn7ezX2G2IUQvf86ZT9EIti-UGNN-V8o58bn-vIdlJqBmlYGJjLYy&sig=AHIEtbTDtCU2bMHFR2am9oumWos3uI5ufw 5- Explain and appraise the capital investment appraisal techniques that can be used for international investment decisions Business dictionary defines capital investment appraisal as “An evaluation of the attractiveness of an investment proposal, using methods such as average rate of return, internal rate of return (IRR), net present value (NPV), or payback period.” Net Present Value (NPV), Internal Rate of Return (IRR), Accounting/Average rate of Return (ARR) Payback Period and Profitability Index are important techniques for investment appraisal but for international investment foreign decisions all the figures must be converted to domestic currency before applying any of the investment appraisal techniques. All the cash flows must be converted in domestic currency on the basis of yearly forecasted exchange rate using the purchasing power parity (PPP). A detail of various techniques and their evaluation is done as follows: Net Present Value (NPV): it discounts all the future cash inflows and outflows to their present value. Then the difference between the present values of total cash inflows and outflows is taken in order to determine NPV of an investment project. The cash flows should be discounted once the conversion to domestic currency has taken place. NPV describes how much of the profit or value is gained from the project by considering the discounted cash flows. The higher the NPV of a project the higher its returns are from the project. The benefits of NPV are that it facilitates the comparison of between two investment projects that each has a different rate of return. Moreover it also helps to calculate that how much of the capital should be invested at present in order to earn a specific amount in future. Most importantly NPV recognizes that concept of time value of money which is fundamental in any financial decision making. Internal Rate of Return (IRR): IRR is that rate return which gives a zero NPV. IRR gives the result in terms of percentage rather than absolute terms like NPV. If IRR is greater than the required rate of return then the project should be accepted. IRR facilitates comparisons between projects in various dimensions like IRR can be used to can be used to compare projects with different initial investments. Moreover it is easier to understand due to its comparative nature. IRR also allows accessing the level of risk present in the project. Its disadvantages include that it ignores the relative size of investment in the projects. Payback Period: through this technique an organization can estimate the time period required to recover the initial cost of investment from investment’s cash inflows. The shorter the period, the more desirable is the project. It is relatively a simple technique for investment appraisal and is appropriate for short term investments. For international projects investments must be converted into domestic currency. The biggest drawback of payback method is that it does not consider time value of money in its calculation. An improvised form of payback method is determining the payback period using the discounted cash flows i.e. estimate the payback period of an investment project using the present values of all cash inflows and outflows. In this way payback method is able to account for time value of money. Accounting Rate of Return (ARR): ARR shows the annual average profit/return as the percentage of total investment in the project. Its formula is: ARR= (Average profit ? Average investment) x 100 The profit figure used in the formula is that of operating profit which implies that non cash items, such as depreciation, are also included in the profit. ARR shows the profitability of an investment project and facilitates comparison between different projects. Its drawbacks include that it does not account for time value of money like payback period. Moreover investors are more interested in cash flows of the project and may not consider ARR as a credible investment appraisal technique due to the involvement of non cash items. Profitability Index (PI): Profitability Index shows the overall feasibility of project in terms of returns. It is found by dividing Present Value of cash inflows with Outflows or initial investment. The greater the PI than1, the higher the profitability of the project is considered. PI is a method that will reinforce the results of the NPV. If a project has a positive NPV then it will also have a PI greater than 1. But as NPV is an index therefore it does not account for absolute figures which not only makes it hard to interpret but also makes PI to ignore the scale of the project. E.g. project A has PI index of 2, while project B has PI of 1.5, then obviously project A is viewed as more favorable. But when scrutinized on the basis of absolute value then it is revealed that project B is earning is earning more profit than project A due to project B’s higher initial investment. These are an assortment of techniques for capital investment appraisal. Organizations must use a variety of techniques before choosing a single project. By using all techniques in combination an organization will be able to cover the drawbacks of each method and will be able to examine the projects in every dimension Bibliography Accounting Rate of Return (ARR) (n.d.) [Online]. Accessed on 9th, May, 2011. Available from World Wide Web: http://moneyterms.co.uk/arr/ Basic Investment Appraisal Methods (n.d.) [Online]. Accessed on 5th, May, 2011. Available from World Wide Web: http://www.londoninternational.ac.uk/current_students/programme_resources/lse/lse_pdf/further_units/fin_man/59_ch_02.pdf Investment appraisal (2010) [Online]. Accessed on 5th, May, 2011. Available from World Wide Web: http://www.accountantnextdoor.com/investment-appraisal-capital-budgeting-%E2%80%93-npv-and-irr/ Investment appraisal (2007) [Online]. Accessed on 5th, May, 2011. Available from World Wide Web: www.bized.co.uk/sites/bized/files/docs/investment1.ppt Investment Appraisal (n.d.) [Online]. Accessed on 5th, May, 2011. Available from World Wide Web: http://www.businessdictionary.com/definition/investment-appraisal.html Investment Appraisal Technique (n.d.) [Online]. Accessed on 9th, May, 2011. Available from World Wide Web: http://www.download-it.org/free_files/filePages%20from%207%20Investment%20Appraisal%20Techniques.pdf Investment Appraisal Techniques (n.d.) [Online]. Accessed on 5th, May, 2011. Available from World Wide Web: http://financial.kaplan.co.uk/Documents/ICAEW/MI_Ch3_p.pdf Read More