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Edexcel A-Level Business Theme 3.3 Decision-making techniques overview quiz quiz

10questions. Pick an answer and you'll see why right away.

  1. A machine costs 40,000andreturns40,000 and returns 10,000 a year. What is the payback period?

  2. A project costs 50,000andearnstotalprofitof50,000 and earns total profit of 30,000 over 5 years. What is its ARR?

  3. What does a positive net present value (NPV) indicate?

  4. What is the main weakness of the payback method?

  5. An option has a 0.6 chance of 100,000anda0.4chanceof100,000 and a 0.4 chance of 20,000. What is the expected value?

  6. In a decision tree, how is net gain calculated?

  7. A task has EST day 5, duration 3 days and LFT day 12. What is its total float?

  8. What defines the critical path in a network diagram?

  9. Which is an example of qualitative data in decision-making?

  10. When is intuition most useful in decision-making?