JMGT_V9_N2_RP2 Koti Reddy Tamma Praveen Sharma Journal on Management 2230 – 715X 9 2 13 23 Investment Appraisal, Internal Rate of Return, Cash Flows, Techno-Economics Analysis This research paper studies the tools and techniques used in investment appraisal in Steel Authority Of India Limited using a live modernization project at SAIL “ the rebuilding of coke oven battery # 4”. It is observed that Investment decisions are the most important and crucial decisions of the corporate world owing to the large amount of risk involved. They affect the value of the firm and thus they need to be critically analyzed both technically and financially. To investigate the feasibility of a proposal, project appraisal techniques like Net Present Value (NPV) method, Internal Rate of Return (IRR) method and Sensitivity Analysis were employed. The authors opine that the NPV comes out to be `. 296.20 crores (posttax) and IRR 26.81% and 33.75% for post- tax and pre- tax respectively which is well above the hurdle rate, hence the project is feasible and recommended for implementation. September - November 2014 Copyright © 2014 i-manager publications. All rights reserved. i-manager Publications http://www.imanagerpublications.com/Article.aspx?ArticleId=2989