CAIE A-Level Business 10.3.2 Payback & ARR

CAIE A-Level Business 10.3.2 Payback & ARR
Cambridge International AS & A Level Business 9609 syllabus for exams in 2026, 2027 and 20282026–2028

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

How this is tested

  • 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

Question 3

Question 3(a)

(a)

Using the data in Table 1.2, calculate the payback period of the country C location.

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Question 3(b)

(b)

Using the data in Table 1.3, calculate the accounting rate of return (ARR) of the country D location.

[ 2 ]