This report is a practical guide to the use of investment appraisal (IA), a method of systematically assessing and comparing proposals using objective and rational criteria. It can apply to a single and well-defined act of investment (a project), a group or series of projects (an investment programme) or even a policy or piece of legislation. It can also be used to justify specific items of recurrent spending. The pre-condition for the use of IA is that the proposal should be coherent, have clear boundaries, and its effects should be identifiable.
Winpenny, J. Guide to Investment Appraisal for DFID Economists. (2005) 31 pp.