Present the case for a major investment programme including the financial evaluation and an assessment of the qualitative issues involved. Airport X – T5 Programme
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Date: Tuesday 17th January 2006 Group Presentation 3: Present the case for a major investment programme including the financial evaluation and an assessment of the qualitative issues involved Airport X - T5 Programme Strahil Anguelov Ivette Barany Alexandra Corcoran Patrick Corser James Morley Contents Introduction 3 Benefits and Applications of ARR 3 IRR-The Benefits and Limitations 4 Risk- Sensitivity Analysis 5 The Importance of Non-Financial and Qualitative Data 5 Conclusion 6 APPENDIX 1 7 APPENDIX 2 8 Bibliography 9 Introduction When Managers are looking to make a substantial investment, there are many factors that affect their decision. Investment Appraisal techniques aid managers in making these decisions. The project we are looking at is the building a Fifth terminal at a large international airport, such as Heathrow. An investment this size will cost £4 billion and will consist of multiple buildings including a new air traffic control tower and road diversions. To help managers decide we used the investment appraisal techniques including Accounting Rate of Return (ARR) and Internal Rate of Return (IRR). There are also qualitative issues that...


