DP Business Management Questionbank

Using Table 1, calculate for Option B the payback period (no working required).

Using Table 1, calculate for Option B the average rate of return (ARR) (show all your working).

Using the information above, calculate the payback period and the average rate of return (ARR) for the 3D printing project (show all your working).

Using information from the case study, additional information above and your results from part (c), recommend whether Utopia should proceed with the 3D printing project.

Using information from Table 1 and Table 2, calculate the net present value (NPV) for the 3D printing project.

Using information from the case study, additional information above and your results from part (c), discuss whether Utopia should proceed with the 3D printing project.

Calculate the payback period if RV chooses Option 2 (show all your working).

Explain one disadvantage to RV of using the payback period method of investment appraisal.

For the new warehouse, using information from the table below, calculate the net present value (NPV) at a discount rate of 6 % (show all your working).

Explain one disadvantage for S4U of using the NPV method of investment appraisal.

For the new warehouse, using information from the table, calculate the average rate of return (ARR) (show all your working).

For the new warehouse, using information from the table, calculate the payback period (show all your working).

Calculate for GT:

the average rate of return (ARR) based on an annual increase in net cash flow of €6000 and assuming an asset life of the new equipment of eight years (show all your working).

Calculate for GT:

the payback period for the €44 million investment in new equipment based on the forecasted increase in net cash flow (show all your working).

Using the information above and in Figure 1, recommend either Option 1 or Option 2 for MSS. You will find it useful to calculate the payback period for the two options.

Refer to Afghan Sun case study SL/HL P1 May and Nov 2018.

Using the case study, resource and appropriate planning tools, recommend whether Su should choose Option 1, Option 2, or neither. You will find it useful to calculate the ARR for Option 1.

Calculate for MM: the average rate of return (ARR) for the lithium mine (show all your working).

Evaluate the two options that KA is considering.

Using the information provided above and in Table 2, calculate the payback period for the new machine (show all your working).

Using the information provided above and in Table 2, calculate the average rate of return (ARR) for the new machine (show all your working).

Using the information in Table 1, calculate for Location A the average rate of return (ARR) (show all your working).

Using the information in Table 1, calculate for Location A the payback period (show all your working).

For Kayla’s proposal calculate the net present value (NPV) using a discount rate of 6 %*.

Calculate, for Option 1 the payback period (show all your working).

For Kayla’s proposal calculate the payback period.

Explain one reason why Option 1 may be a less risky investment than Option 2.

Calculate, for Option 1 the average rate of return (ARR) (show all your working).

Calculate, for Option 2, the average rate of return (ARR) (show all your working).