(a)[2]
With the data in Table 1.1, calculate the payback period.
(b)[2]
With the data in Table 1.1, calculate the net present value (NPV) over six years discounted at 8%.
(c)[12]
Evaluate LBM’s decision to go ahead with the hot water mine.
Business 9609 · AS & A Level · Investment appraisal
Investment appraisal — practice question
The questions use the information shown in Table 1.1.
Worked solution & mark scheme
This 16-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Payback period means the time needed to recover the initial investment.” …
- Full mark scheme, point by point
- Step-by-step worked solution
- Write your answer & get it marked instantly by AI