Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)[4]

Refer to Appendix 2. Calculate the projected net present value (NPV) of the proposed pizza van project over four years.

(b)[4]

Refer to Appendix 3. Calculate the total contribution of one pizza van for 2021.

(c)[12]

Using your responses to 4(a) and 4(b) together with any other relevant information, Discuss whether the pizza van project is likely to improve profitability for PAC.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Fully correct NPV working: 200 – (65.10 + 60.20 + 63.20 + 59.20) = NPV = 47.70 ($000).” …

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