The practice of investment viability appraisal in Akure, Nigeria
This paper examines the role played by valuers in choosing the right viability appraisal technique for an investment appraisal. Structured questionnaire was administered on Twenty one (21) registered and practicing Estate Surveying and Valuation firms in Akure out of which fourteen (14) were retrieved and found good for analysis. The data obtained were analyzed using descriptive statistical tools such as frequency tables and weighted mean score 3 and 4-point likert formats. The result of the analysis revealed that Valuers mostly make use of Payback Period, NPV and IRR, which are deterministic in nature. This is as a result of the valuers basing their appraisals mostly on economic and financial criteria only without fully analyzing the various factors such as the prevailing inflation rate in the economy and the level of risk tolerance of their client. The outcome of a good investment appraisal forms the basis upon which any investment decision is based. A good investment is an offset of a good viability appraisal, and the valuers’ role is to give such advice that will maximize the benefit’s objective of the investor.
Key Words: Investment, Practice, Risk Tolerance, Valuer, Appraisal Technique, Viability Criteria