Appraisal Techniques of Public Investments and Projects

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Ministry of Finance and Economic Planning National Development Planning Directorate Public Investment Technical Team Unit Capacity Building to Support the Rwanda Public Investment Program Investment Appraisal Training Manual for Government Staff Prepared by Sulaiman Kyambadde P.O. Box 1851 Kigali, Rwanda Tel: +250 255114413 (office) October 2011 The purpose of this Training Manual is to help PITT implement the use of international best practices of Investment Appraisal techniques in its programming of public sector investments. It describes how public sector investments should be assessed at conception or programming stage. The modules introduce the basic concepts behind the appraisal techn iques and their applicability…show more content…
22 3.2.2 Typical investment considerations ......................................................................................23 3.3 Defining annual cash flows ...................................................................................................24 3.4 Performance measures, decision criteria and the issues involved ............................... 25 3.4.1 Net present value ....................................................................................................................26 3.4.2 Net future value.......................................................................................................................26 3.4.3 Internal rate of return .............................................................................................................26 3.4.4 Benefit-to-cost ratios ...............................................................................................................29 3.4.5 The payback period ................................................................................................................30 3.4.6 The peak deficit .......................................................................................................................30 3.5 Review of DCF performance criteria ..................................................................................31 4. Module 3: Evaluation methods

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