ConceptConceptDocsDocuments

CAIE A-Level Business 10.3.2 Payback & ARR

Practise calculating payback and ARR from investment tables, then interpreting what the results imply for projects such as machines, factories or production lines.

Syllabus
2026–2028
Course
Business 9609
Level
A2

Exam points

  • calculate payback from net cash-flow tables, including the recovery year and months
  • calculate ARR using average profit and average investment, with correct percentage units
  • interpret payback or ARR results when comparing a new machine, factory or location

10.3.2—Payback and ARR question 1

[Maximum number: 2]

Refer to lines 24-25. Calculate the accounting rate of return (ARR) for the new grinding machine.

All question bank results loaded