Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the need for investment appraisal
Learning Objective/s:
  • Describe why investment appraisal is essential for capital allocation.
  • Explain how appraisal techniques evaluate risk and return.
  • Apply at least two appraisal methods (e.g., NPV and Payback) to a simple project scenario.
  • Interpret appraisal results to make a justified investment recommendation.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed worksheet with a case study and cash‑flow data
  • Calculator or spreadsheet software
  • Handout summarising NPV, IRR, Payback formulas
 Introduction:
Begin with a quick poll: Which recent product launch do you think was a good investment and why? Review that capital is limited and decisions must be justified. Explain that today’s success criteria are to identify the purpose of investment appraisal and to demonstrate how to apply two techniques to a case.
Lesson Structure:
  1. Do‑now (5’) – Students list recent business investments and discuss perceived risks.
  2. Mini‑lecture (10’) – Define investment appraisal, its purpose, and introduce key techniques (Payback, NPV, etc.).
  3. Guided practice (15’) – Work through a cash‑flow table; calculate Payback period together.
  4. Independent activity (15’) – Using the worksheet, calculate NPV for the same project with a given discount rate.
  5. Think‑pair‑share (5’) – Compare results, discuss advantages/disadvantages of each method.
  6. Whole‑class debrief (5’) – Summarise how appraisal informs strategic decisions and stakeholder confidence.
Conclusion:
Recap that investment appraisal helps allocate scarce resources, manage risk, and align projects with strategy. Ask each student to write one key takeaway on a sticky note as an exit ticket. For homework, complete the remaining appraisal techniques on the worksheet and be ready to present findings tomorrow.