DP Business Management Questionbank
3.8.1 Investment opportunities using payback period, average rate of return (ARR) and NPV
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Description
[N/A]Directly related questions
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19M.1.SL.TZ0.4b.i:
Using the information in Table 1, calculate for Location A the payback period (show all your working).
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19M.1.SL.TZ0.4b.ii:
Using the information in Table 1, calculate for Location A the average rate of return (ARR) (show all your working).
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19N.1.HL.TZ0.4b.i:
For Kayla’s proposal calculate the payback period.
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19N.1.HL.TZ0.4b.ii:
For Kayla’s proposal calculate the net present value (NPV) using a discount rate of 6 %*.
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19N.2.SL.TZ0.2b.i:
Calculate, for Option 1 the average rate of return (ARR) (show all your working).
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19N.2.SL.TZ0.2b.ii:
Calculate, for Option 1 the payback period (show all your working).
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19N.2.SL.TZ0.2c:
Calculate, for Option 2, the average rate of return (ARR) (show all your working).
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19N.2.SL.TZ0.2d:
Explain one reason why Option 1 may be a less risky investment than Option 2.
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20N.1.SL.TZ0.4b.i:
Using Table 1, calculate for Option B the average rate of return (ARR) (show all your working).
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20N.1.SL.TZ0.4b.ii:
Using Table 1, calculate for Option B the payback period (no working required).
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21M.2.SL.TZ0.4c.i:
Calculate the payback period if RV chooses Option 2 (show all your working).
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21M.2.SL.TZ0.4c.ii:
Explain one disadvantage to RV of using the payback period method of investment appraisal.
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21N.1.SL.TZ0.4b.ii:
Calculate for MM: the average rate of return (ARR) for the lithium mine (show all your working).
