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Finance and Accounting

Quick questions on Investment appraisal - Eduqas A-Level Business

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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A project costs £60,000\pounds 60{,}000 and returns £20,000\pounds 20{,}000 a year. Calculate the payback period. [2 marks]
What is q2?
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Over five years a £100,000\pounds 100{,}000 project returns total cash flow of £150,000\pounds 150{,}000. Calculate the ARR. [3 marks]

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