3.8 Investment Appraisal

Assessment Objectives
Investment opportunities using payback period and average rate of return (ARR)	AO3, AO4
Investment opportunities using net present value (NPV)	AO3, AO4

• Finance – a concise summary of the payback period and the average rate of return.

• Payback Period in Capital Budgeting

• Investment Appraisal – explanation of the payback period, the average rate of return, and net present value explained.

• Payback Explained – a video explaining the payback period in 12 minutes.

• Average Rate of Return (ARR) Explained – a video explaining ARR in less than 10 minutes.

• Payback Period – the payback period is explained and gives a more formulaic approach to payback period.