Investment Appraisal for Business Studies (ARR, PBP and NPV)

This pack contains 12 case studies in the style found in exam questions. Each study has data and questions to calculate

• average rate of return
• payback period
• net present value (discounted cash flow)

Investment Appraisal Definition: Quantitative methods used by a business to assess the value of potential investments.
Average rate of return definition: The average cash flow generated by a project over its lifespan.
Payback period definition: The length of time it takes for a project to recoup the money invested.
Net present value definition: The present day value of cash received in the future from the investment in a project.

The questions are presented with 2 case studies per sheet which can be printed for students to work on paper. Alternatively, they can be displayed on a whiteboard or posted on a VLE.

This resource is suitable for a range of business studies qualifications including
A Level Business Studies
IB Business Management
BTEC Business Studies