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3.3 Business revision - Coggle Diagram
3.3 Business revision
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Extrapolation
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required to have art and skill when the trend is not quite clear cut you need t understand the reason behind the trend change
Investment Appraisal
process of using forecast cash flows to access the financial attractiveness of an investment decision, linked with considerations of non-financial factors
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Average rate of return
- calculate total profit over the lifetime by adding net cash flows and deducting initial outlay
- divide by the number of years project is meant to last
- apply formula
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Moving averages
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calculate raw data, then work out three month total, and work out the three month average
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