Then such an instruction enlarges the scope of the visualized valuation report and gives the appraiser an opportunity

of preparing a competent decision valuation. For example, the authority should be advised on; whether the purpose of the contemplated compulsory acquisition is the one for which compulsory powers can be invoked, the estimated cost of compulsory acquisition, whether the funds budgeted for the purpose will see the compulsory acquisition through, and whether it is worthwhile plunging in to the venture. The is essentially a decision valuation. If an expanding business establishment takes an irrevocable decision to take over another business and engages a professional valuer to perform a valuation of it as a going-concern, with a view to enabling this organization determine how much to pay for the take-over bid, this is essentially an executor valuation. But if the professional valuer had been engaged to look in to the possibilities and desirability of the contemplated take-over bid before an irrevocable decision is taken or policy formulated on the take-over bid, then his instruction primary calls for a decision valuation. Similarly, if an owner of a piece of land calls for a valuation of its development potential to enable him take a primary or fundamental decision as to whether, when, and how to develop [and perhaps how best to dispose of the resultant accommodation or spase], the exercise is essentially a decision appraisal. One can go adinfinitum listing examples to illustrate the true nature of decision appraisal. It is hoped that the few examples cited above give some clarification. Sometimes a valuation may have strong element of both decision appraisl and exercuted valuaton.For example, a valuation may be needed nooot merely to advise on the value but equally calls also for an appraisal report to enable the decision maker make up his mind.Notwithstanding his, the cases there are no water-tight compartments between them.In fact, many valuation reports may call for prudent dosages of both elements as dictated by circumstances of the case.Some valuation instructionts invole strong elements of decision and exercuted valuation. Even some of the largely executor valuations give oppoturnity for secondary or afterthougtht decisions.somes valuation instructions merely highlight one of the two. Clear appreciation of the fundamental goals of the types of valuation mokes lucid, more coherent and more effective. Decision valuation is essentially concerned with the fund amental issue of whether the visualized or contemplated decision is worth-while. If a valuation largely does this, it is a decision valuation. It is also a decision valuation if it is specifically required to settle either of the question. After this,any further valuation exercise in an attempt to carry out the decision or to realize the objective of the decision, is an exercutory valuation. BASIC COMPONENT OF DECISION VALUATION. Decision valuation has tended to be shrouded in some mis-leading terminologies, the most recent one being feasibility repot Theis term has been shown to be a misnomer. For a number of reasons the two major exercises undertaken by investment analysts, valuers or appraisers, econometricians, project accountants, and so on which shoud clearly be identified as and boldly labeled feasibility and viability appraisal as if they two terms feasibility and viability as if they were completely synonymous and therefore freely interchangeable. Thus it is not uncommon these days to find some authors and many consultants using the term feasibility to cover not only those studies or reports concerned with

feasibility, pure and simple,but also with those other considerations which should, in strict logic or enlightened professional practice, belong to viability appraisal or viability reporting A number of factors have been responsible for this confusion. Paramount among these are: [i] the basic considerations of economics, low, technology, and the socio-political environment Which run through both feasibility and viability appraisals even though to divergent degree S and with different emphasis; [ii] the difficulty of thinking of one without necessarily engaging in a consideration of the other in most respects-becouse of the practical difficulty of thinking of them