Capital Investment Appraisal


The Capital Investment Appraisal Manual provides guidance on the Capital Investment Appraisal Model, ‘Appraisal Model’, to be applied for projects made available to users to meet the diverse project needs. The Model is for all Imperial College building and refurbishment projects over £1m.

Capital Investment Appraisal Model Manual *

*Please note that the full Manual will be published in due course once the new structure of the Estates Development and Projects division has been confirmed and the College Governance structure has been updated. 

Appraisal Model

The Capital Investment Appraisal Model (“Appraisal Model”) provides a consistent approach to capital investment appraisal. It will assess the viability of a project and the value it generates. The Appraisal Model will support Central Finance understand the consequences of the decision made for each capital project in isolation. 

Standard financial appraisal techniques like Net Present Value (NPV), Discounted Payback Period and Internal Rate of Return (IRR) are used to aid decision makers. 

There are three Excel template models to be used for the ‘Appraisal Model’:

  1.  Academic Projects: Academic capital investment appraisal model
  2.  Non-Academic Projects - Related Ventures: Related Venture capital investment appraisal model
  3.  Non-Academic Projects - Support Services: Support Services capital investment appraisal model

Each Model has unique complexities relating generally to the different types of income and costs that result from the proposed investment (e.g. if it is renting space, what level of service various tenants require, if it is Academic, are the students home/overseas and undergraduate/ postgraduate which have very different implications for the likely fee income).

Appraisal model steps

Completion of the Model

The steps in the approval process outlined here fully align with the various stages outlined by the College’s Estates Development and Projects division in their Project Process Map

Stage 0: Project Feasibility Document 

For projects over £1m an Initial Investment Appraisal Model must be submitted with the PID for all Stages.

Stage 4: Technical Design 

For projects over £1m an updated Investment Appraisal Model must be submitted with the final PID for all Stages for presentation to PRM at the end of Stage 4 Technical Design.

Analysis and Acceptance

Once the Investment Appraisal Model has been completed, the Appraisal Model will be reviewed by the Capital Finance and Appraisal Team who will explore the appraisal options in detail.

Once the Model has been reviewed, it is submitted for formal approval together with the PID for all Stages (Final Model), subject to the agreed threshold levels of authority in the Capital Investment Appraisal process for Imperial College. 


  • Shahnura Hussain

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    Personal details

    Shahnura Hussain Head of Capital and Control Accounting

    020 7594 2631


    1st Floor, Faculty Building, South Kensington Campus