What is accounted for solely in the financial appraisal?

In financial appraisal, the primary focus is on quantifying the monetary aspects of a project or investment. Cash releasing savings specifically represent the actual cash that will be available as a direct result of the project. This type of saving can be clearly defined, measured, and has direct implications for the financial viability of the project. It reflects the idea that certain costs may be eliminated, or revenues increased, providing a tangible benefit that can be accounted for in financial terms.

Total savings achieved, while it sounds relevant, may not be made up exclusively of cash savings and could include non-cash benefits or other qualitative measures. Non-cash benefits, on the other hand, do not have a direct financial value and are not purely part of a financial appraisal. Future market value also tends to involve speculative elements and broader economic conditions, making it less precise and certain in the context of straightforward financial appraisal. Thus, cash releasing savings stand out as the most relevant and measurable component solely accounted for within financial appraisal.