This research work is focused on the causes of effectiveness investment appraisal techniques in financial institution in Nigeria banking industries, with a special renferences to the First Bank Plc) the rate of appraisal In  banking industries in Nigeria this days cannot be undermined which is also affirming and the drastic implication. It possesses on bank survival and Nigeria economy.


Title page






1.1 Background of the study

1.2 Statement of the problem

1.3 Objectives of the study

1.4 Research methodology

1.5 Justification and relevant of study

1.6 Scope and limitation of the study

1.7 Plan of the study

1.8 Definition of terminologies



2.0 Introduction

2.1 Activities of financial institution viz-auiz the Ned to invest

2.2 Capital investment appraisal techniques

2.3 The effect of inflation in investments appraisal

2.4 Impact or taxation on choice of investment

2.5 Investment decision under capital rationing



3.0 introduction

3.1 Historical background of the bank of Nigeria Plc

3.2 Organization chart of Frit bank of Nigeria Plc

3.3 The ivestructuring of the bank

3.4 First Bank century II projects

3.5 The vision and mission statement of the bank


Data presentation and analysis

4.0 Introduction

4.1 Procedure

4.2 Hypothesis testing

4.3 Result obtained and interpretation



5.1 Summary

5.2 Recommendation

5.3 Conclusion



This chapter introduces the topic “effectiveness’ of capital investment appraisal techniques which is also called “capital budgeting techniques” in financial institutions. The study seeks to executive how First Bank of Nigeria Plc applies its investment (s) appraisal techniques.

The first chapter deals with the background of the study statement of problems and the objectives of the study. This chapter also examines critically, the justification and relevance of the study, scope and limitation of the study and finally, plan of the study.


Investment could be described as the setting aside of the certain proportion of income or profit to generate additional or future returns. It could also tensed as the induction of available financial and natural resources into the economy top enhance further growth and development.  

Investment constitution a source of fund to the receiver of such funds while it is an application of fund the provider Both the providers and the receiver of such may be individual organizations, government and other national and international investors.

Investment can be done in two ways vis: equity and loan stock, investment is the commitment of present day funds and resources into projects, activists and aspect which are expected to yield income in the future capital investment can also be said to be ersoucres which are capital in nature and as such can not be easily converted to liquid cash within a short period of time. While stock investment is the purchase of shares or bond in limited companies which are in corporated under the law and duly registered on the floor of the stock exchange.

This shares or bonds are expected to yield dividends or interest either a fixed rates of varying rates depending on the nature of the shares or bonds for example ordinary shares yield vending fixed rate of interest wether  the company declares profit or not, on the other hand, debentures yield fixed rate of interest whether the company declares profit or not.

Investment is divided into two namely, long term investment and short terns investment.

Long term investments are mostly used to fiancé capital projects and short term investment are mostly used to fiancée working capital shortage.

There are certain factors which influence capital investment decision; such factors as propensity to save rte of interest on saving net cash that is currency in circulation in the business environment rates of obsolesce in the productive fixed assets. The opportunity cost the financial risks and other uncertainties in the business environment and the profitability of the investment. These variables make article evaluation of investment alternatives necessary in order to maximize the wealth of the potentials investor.

The decisions on when and how to utilize the available financial resources is taken by proper investment appraisal. This can also be referred to capital budgeting which is the production of the cost an return on invested as well as investment of capital funds. It should be noted however that an elaborate investment as appraisal would be needed when dealing with many numbers of individual routine investments because the cost might not satisfy the means. For large companies, an elaborate appraisal is need, skillful and complex fact findings one involved these are often carried out by employing the service of experts.

It is imperative to emphasis the fact that an elaborate system of appraisal does not guarantee the source of an investment. Not withstanding, the decision. This is because the projections are made into the future in which a lot assumption is made.  The decision based upon these evaluation techniques will give its management into maximizing the wealth of the share holders whose interest they represent, it is for this purpose that we are embarking on this study.


Two broad problems arise with investment appraisal the first is the result of not applying capital investment appraisal techniques before making investment decisions the second problem is the inability of the management to apply the right method of appraisal.

These problems are better expressed as follows:

a) Inability to develop alternative solution which may be due to lack of access to valid and reliable information about investment.

b) Inability to complete on-going project, this problem  is caused by misleading assessment of not ash flow and capital rationing.

c) Problem of not considering the business environment factors during investment appraisal which include political governments/legal social, cultural and international factors during investment appraisal.

d) The difficulties of absolute inability to determine the basic solution to the defined problems which might be due to the use of in appropriate investment techniques.

e) Mistake of identifying symptoms for problems as the symptoms indicate the problems.


The propose of studying is to identify the need for investment appraisal and the procedures was to be applied by an organization for growth and development. This study shall also demonstrated the various capital investment appraisal techniques as adopted in First Bank Nigeria Plc and also review other capital investment appraisal techniques, their merit and demerits their assumption and critical for each at the techniques . The effect of the environment factors on the choice of investment appraisal techniques a comparison between these factors shall analyzed in this study. 


The method which will be adopted in carrying out this study includes questionnaire and personal interview in some cases. 

The source of data available for obtaining information for the purpose of this research are primary and secondary source which provide for all the necessary information needed as far as the research working concerned.

The information used in the research were from the main source. The first source is the use of questionnaire administered personally on the respondent.

The second source is an extensive interview of strategic management of First Bank of Nigeria Plc.


This study shall be great important to individual and corporate bodies who are involved in capital investment decisions making. This study will be used in the evaluation of capital project.

These are projects with not only it will be useful in this area, but is will also assist management to make proper decisions in the case of mutually exclusive project. These are projects with different life span and capital rationing.

The study will also be importance to non financial experts as it will provide necessary guidance on how to gather the information from various source both internal and external to the organization in considering the financing and taxation implication to the project and decision making based on the analysis students who may want to have a practical in sight on how appraisal techniques are used in companies will also benefit tremendously from this study. The study is still relevant to students who might wants to carryout research work on this crucial topic.


The scope of the study will cover significant aspect of capital budgeting including, the effects of inflation, taxation, risk, certainty and uncertainly and capital rationing on investment decisions. The limiting factors to this study are I adequate finance and non-availability of vital information which were confidential to the bank.


The first chapter of this study deals with the background of the study, statement of problems and objectives of the study, it also examines justification and relevant of the study, scope and limitation of the study’ plan of the study and definition of terminology.

The second chapter is a review of some relevant literate on the study. The review include the conceptual framework and discussion on existing studies   third chapter deals with the history profile of the Organisation.this includes historical background of first Bank of Nigeria Plc, organization structure (chart) mission and vision c statement of the bank ad re-engineering strategy.


Investment appraisal: This can be defined a the study and analysis of various investment, alternatives with a view of selecting the cost option in which an organization can part away with its immediate funds in anticipation of an expected  flow  of future earnings  over a period of years.

Cost of capital: This is the discount rate which when applied to a project cash flows streams would determine whether the project is worth while or not. If a project NPV (Net Present Value) is positive using the cost of capital as the discount rate, the project should be accepted if a projects NPV ids negative, suing the cost of capital as the discount rate, the project should be rejected.

Outlay: This refers to the cost to purchase or to maintain the necessary assets  and to put them in use.

Initial outlay: This is the immediate cash out flow used to obtain the required assets and to put in use

Cash flow: It is a phrase meaning the actual movement of cash in and out of enterprises.

Cash flow or positive: Cash flow is the cash received that is found coming into the business from operation some example are, project revenue, government grant etc.

Cash of out flow: Otherwise known negative cash flow is the period out, this are expenditure that are in cured by  investment in an organizations, some example are, initial cash outlay, labour cost, materials cost etc.

Net cash flow: It is the different between the total net cash in flow and total net cash out flow.

Risk: This is described as the possibility that the objectives may not be realized that is, the uncertainty as to the occurrence of an economic loss. Risk is unpredictability, the tendency that actual result may differ from predicted result. It is the possibility of an unfortunate occurrence. It is the change of loss example are, interest rate risk, risk of default, price level risk, business risk, finance risk, and market and operation risk. 

Capital asset pricing model (CAPM): This is also used in calculating, it is a method used on calculating the cost of equity capital base on the need to adjust for risk. The model states that the required return on any project depending any of level of risk calculated. 

Weighted average cost of capital (WACC): acting cost of capital. It shows minimum rate of return provide capital.




RESEARCHWAP.NET is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • " is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • " is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing