(a)[10]
Calculate, by filling in the table below, the NPV difference between buying bus A and bus B.
(b)[1]
Calculate the NPV for buying bus B.
(c)[3]
Calculate the sale proceeds receivable at the end of year 3 for bus A that would make the NPV for the two buses equal.
(d)[4]
Calculate the ARR for buying bus B.
(e)[6]
Advise Jason which bus he should choose. Justify your answer.
(f)[1]
State one investment appraisal method (other than NPV and ARR) that a business could use.