02 — Capability · BC-220.50
Investment Appraisal
Evaluate proposed investments on a common financial basis, track whether the promised benefits arrive, and feed what was learned back into the next appraisal.
- Business Case Analysis
- Capital Appraisal
In scope
- Business case financial models
- Hurdle rates and appraisal methods
- Post-investment benefit tracking
Out of scope
- Portfolio prioritization across initiatives (see BC-180)
- Mergers and acquisitions valuation (see BC-110)
Realized by · 2
Used in · 2
Build it · 0
- Nothing in the library points here yet.
Decomposes into · 3
- BC-220.50.10Business Case ModelingBuild the cash flow model behind a proposal, with assumptions stated, sensitivities shown and the base case separable from the optimistic one.
- BC-220.50.20Appraisal Methods & Hurdle RatesSet the discount rates, payback thresholds and evaluation methods every business case is held to, so proposals compete on equal terms.
- BC-220.50.30Benefit Realization TrackingFollow each approved investment after delivery to confirm the benefits it promised actually appeared in the numbers.