Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)[6]

Using Table 1, calculate, for the purchase of the safari vehicles, the:

  • the accounting rate of return (ARR) [3]
  • the net present value (NPV) using an 8% discount rate. [3]
(b)[12]

You may use your answers from 4(a) together with other information. Recommend whether MAA ought to buy the safari vehicles. Support your recommendation with reasons.

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