Assessment of the attractiveness of possible investments or projects.
Activities may include, but are not limited to:
Selecting and using appropriate methods to compare financial investments and returns
Using recognized investment valuation methods to compare investments and revenues, including payback period, discounted rate of return, discounted cash flow (net present value and internal rate of return) collecting data using appropriate top-down or bottom-up approaches incorporating other factors into the valuation approach - such as legal considerations, environmental or social impacts, operational benefits, risk
Developing valuation techniques to account for subjective benefits or disadvantages and to aggregate the results of several valuation techniques to compare options
Documenting and presenting the results of investment appraisals creation of investment appraisal as a tool for selecting projects/initiatives for further study Identifying possible funding sources and their impact on investment appraisal.
Investment appraisal: level 4
Develops and documents investment evaluations for a number of different projects. Determines appropriate evaluation methods based on project characteristics. Gathers information necessary to create investment appraisal in collaboration with internal and external stakeholders. Presents the results of the investment appraisal to selected stakeholders. Refines and maintains investment evaluations.
Investment Valuation: level 5.
Advises on investment valuation approaches and adapts organizational standards to portfolio/program context. Leads investment evaluation activities for simple portfolios and programs and complex projects.
Investment evaluation: level 6.
Develops organizational policies, standards, and guidelines for investment evaluation. Leads activities to establish consistent evaluation of all projects and programs within a portfolio. Reviews investment evaluations for high value initiatives to ensure quality. Leads investment evaluation activities for complex work programs and portfolios.