Etymology
Financial Appraisal is an effective tool that have application at every stage of Total Asset Management . They can be used for assessing the integrity of capital investment decisions and the effective and efficient management of existing physical assets. Application of those tools ensures that the 'best value for money' is achieved and that scarce resources are allocated in a manner that reflects the Government's priorities. Financial Appraisal reviews the purely financial aspects of a product or project. Areas where financial appraisal techniques should be used: Assessment of New or Replacement Capital Expenditure, or major Maintenance. Assessment of Appropriateness of Design, Operating or other Standards. Other Areas of Application such as Program Evaluation and Regulation, Proposals and Review.
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