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ScotlandAccountingQuick questions
Management Accounting
Quick questions on Investment appraisal: payback, ARR, NPV and IRR - SQA Advanced Higher Accounting
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 GBP 60,000 and returns GBP 20,000 per year. State the payback period. [2 marks]
What is q2?Show answer
A cash flow of GBP 40,000 is received in two years. The discount factor at 8% for year 2 is 0.857. State its present value.
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