Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)[8]

Use Table 2. Calculate:

  • the accounting rate of return [4]
  • net present value using a 6% discount rate [4]
(b)[12]

Use your results from 4(a) and any further information. Recommend whether RW should offer guided bicycle tours or not. Justify your decision.

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