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Proper investment Apraisal is very important to Small and medium enterprises when deciding on which investment to undertake. Firm which select investment poorly are likely to fail in the near future. This book analyeses investment appraisal techniques used by most SMEs in Tanzania taking Morogoro Municipal as a case study. The book assess the investment appraisal methods which are used by SMEs and the accurancy of the methods used. The book also analyses the existing relationship between investment appraisal technique used by SMEs and the SMEs performance.This book therefore provides different methods used by SMEs in appraising investments, weaknesses and strenght of the methods used and it gives recomendations in order to improve SME investment Appraisal practices and hence contribute to their performance.