PowerPoint that covers all of 3.13 – Capital Investment Appraisal (from the new AQA specification)

A very detailed PowerPoint that covers all of 3.13 – Capital Investment Appraisal (from the new AQA specification).

I have enlivened this topic with lots of context. Time has been spent making this resource very ‘user friendly’ and produced to a high standard. The PowerPoint includes numerous worked examples on both Payback and Net Present Value – these can be done collaboratively, by the teacher or by the students. All answers - with careful explanations - are included. These have been carefully ‘tiered’ to show the progression of the techniques (starting off easy – then becoming much harder).

All of the specification requirements are covered:

3.13 Capital investment appraisal

The calculation and use of cash flows in capital investment appraisal.
Payback and net present value (discounted cash flow) of a capital project.
The benefits and limitations of the payback and net present value methods of capital investment appraisal.
The use of capital appraisal measures in the evaluation of projects. The evaluation of projects could include:
• financial factors
• non-financial factors.

You will also find a guide on how to address the NEW LOOK 25 mark exam question in Paper 2 – in which a Capital Investment Appraisal question is quite likely. Suggested approaches and layout for such a question is included in this all-inclusive resource.