financial appraisal

Quick Reference

The use of financial evaluation techniques to determine which of a range of possible alternatives is preferred. Financial appraisal usually refers to the use of discounted cash flow techniques but it may also be applied to any other approaches used to assess a business problem in financial terms, such as ratio analysis, profitability index, or risk analysis. Compare economic appraisal.

Subjects: Financial Institutions and Services — Accounting.

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