Financial methods in environmental decisions
Financial methods in environmental decisions

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

Free course

Financial methods in environmental decisions

1.3 Financial appraisal of projects

Cash can be thought of as just another resource that business has to manage along with materials, fuel, water, labour and so on. It is the responsibility of managers to ensure that their organisation is using its cash, like other resources, in the most efficient way. They have to determine whether a particular project is worth investing in or which of two or more proposed projects that are competing for the same cash resources should be funded. The for-profit sector has to demonstrate the financial sense of proposals if it hopes to convince people to buy shares in the company, the public sector has to demonstrate that it is using the public’s funds wisely, and the not-for-profit sector needs to demonstrate its financial probity to its governors and trustees and possibly to the appropriate regulators.

In the following subsections, you will learn how to use and interpret the results from some basic financial appraisal tools.

T867_1

Take your learning further371

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses372.

If you are new to university level study, we offer two introductory routes to our qualifications. Find out Where to take your learning next?373 You could either choose to start with an Access courses374or an open box module, which allows you to count your previous learning towards an Open University qualification.

Not ready for University study then browse over 1000 free courses on OpenLearn375 and sign up to our newsletter376 to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371