(a)[8]
Work out the annual net cash flow for Option 1.
(b)[4]
Find the accounting rate of return (ARR) for Option 1.
(c)[5]
Work out the ARR for Option 2.
(d(i))[1]
State one benefit of using ARR compared with other investment appraisal methods.
(d(ii))[2]
State two drawbacks of using ARR compared with other investment appraisal methods.
(e)[5]
Discuss additional financial and non-financial influences that could affect Asif’s choice to start a farming business.