(a(i))[9]
Calculate the net present value (NPV) for the dig.
(a(ii))[3]
Calculate the payback period for the dig.
(a(iii))[4]
Calculate the accounting rate of return (ARR) for the dig.
(b)[7]
Advise Barry on whether he should go ahead with the dig in the farmer’s field. Justify your answer.
(c)[2]
State two drawbacks of using ARR for investment decisions.