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Quick questions on Investment appraisal: payback, ARR and net present value - OCR 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?Show answer
A project costs and returns a year. Calculate the payback period. [2 marks]
What is q2?Show answer
Analyse one reason why NPV is considered superior to payback for a long-term project. [6 marks]
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