HomeIB Business ManagementTopic 3.8

Investment appraisal

Topic 3.8 introduces methods for evaluating investment decisions, including payback period and average rate of return (ARR). Students learn to calculate each metric, interpret results, and evaluate the strengths and limitations of different appraisal techniques.

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IB Business Management · Topic 3.8

Sub-topics in Topic 3.8

3.8.1Payback period3.8.2Average rate of return (ARR)3.8.3Comparing investment options