Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)[8]

Use Table 3 and Appendix 1. Calculate for the first 6 years of the frozen food project:

  • discounted net cash-flow figures [2]
  • discounted payback period measure [3]
  • net present value measure [3]
(b)[12]

Discuss whether your results from 4(a) together with the other information given are enough to allow NFP’s directors to decide whether to proceed with the frozen food project.

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