Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)[2]

Using lines 24–25, calculate the accounting rate of return (ARR) for the new grinding machine.

(b)[2]

Look at Table 1.1. Calculate the net present value (NPV) of the new grinding machine.

(c)[12]

Evaluate whether GBS should buy the new grinding machine.

Worked solution & mark scheme

This 16-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Correct answer shown (ARR = 9,000 / 55,000 × 100 = 16.4% or 16.36%).” …

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