Investment Appraisal - Payback, ARR and NPV

This resource would take approximately two double lessons to complete. The lesson shows how to calculate the different investment appraisal techniques, including Payback period, Average Rate of Return, Net Present Value and the qualitative factors to also consider. There are examples within the PowerPoint that guides students how to understand each technique and to analyse if the different options are viable investments. The worksheets then link to the theory taught to consolidate student understanding. This can be targeted towards both KS4 and KS5 and is applicable to all exam boards.