Quelpr
3 marksCapital Budgeting and Investment Appraisal

CAPE Accounting Unit 2 · 2013 · Paper 2 · Question 3(c)(ii)

Project appraisal techniques: include what the technique seeks to achieve, how the decision is made, and one piece of information required for calculation.

Explain the internal rate of return (IRR) project appraisal technique.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 3(a)(i)Calculate the contribution margin ratio.[2 marks]
  2. 3(a)(ii)Calculate the number of tickets that must be sold to break even in units and in dollars.[3 marks]
  3. 3(a)(iii)Calculate the number of tickets that must be sold to earn a target profit of $50 000.[2 marks]
  4. 3(b)Identify four non-financial factors that can influence Fanciful Enterprises' ticket pricing decision.[4 marks]
  5. 3(c)(i)Explain the payback period project appraisal technique.[3 marks]
  6. 3(c)(iii)Explain the net present value (NPV) project appraisal technique.[3 marks]
  7. 3(d)(i)Compute the labour rate variance.[4 marks]
  8. 3(d)(ii)Compute the labour efficiency variance.[4 marks]
  9. 3(d)(iii)Compute the material price variance.[3 marks]
  10. 3(d)(iv)Compute the material quantity variance.[4 marks]

More practice: the rest of this paper · more Capital Budgeting and Investment Appraisal questions · all CAPE Accounting Unit 2 past papers