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3.3.3.2c - Net present value

Syllabus
2017
Objective
3.3.3.2
Level
A2

c - Net present value

Calculate and interpret discounted cash flow using net present value only.

Use c - net present value to connect the rule to the data and decision in the question.

This matters because c - net present value determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - net present value to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Net present value is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

ConceptA-Level Edexcel Business A2