1.1 General Introduction
In Nigerian Companies, investment appraisal techniques refers to those traditional and scientific tools that management of a business organisation make use of as a guide in accepting or rejecting an investment opportunity with a view of choosing among them the most viable and desirable one. An efficient allocation of capital is the most important finance function in the modern times. It involves decisions to commit the firm’s funds to the long-term assets; such decisions are of a considerable importance to the firm since they tend to determine its value by influencing its growth, profitability and risk.
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