Business Management HL
Business Management HL
6
Chapters
223
Notes
Unit 1 - Introduction To Business Management - QB
Unit 1 - Introduction To Business Management - QB
Unit 2 - Human Resource Management - QB
Unit 2 - Human Resource Management - QB
Unit 3 - Finance & accounts - QB
Unit 3 - Finance & accounts - QB
Understanding Capital Vs. Revenue Expenditure In Business
Capital Vs. Revenue Expenditure: Key To Asian Farmers' Success
Unlocking Internal Finance: Pros & Cons For Businesses
Unlocking Business Growth: Comprehensive Guide to External Finance
Mastering Short-Term Vs. Long-Term Finance: Key Differences
Key Factors Determining Finance Source Choices
Unlock Business Growth: Internal Vs. External Sources Of Finance
Three Hills Driving School: Business Finance Dilemma
Understanding Business Costs: From Fixed To Variable
Unlock Business Success: Master Fixed, Variable, & Total Costs
Unlocking Financial Success for TAK Tours: A Case Study on Cost & Revenue Optimization
Unlocking the Power of Final Accounts: A Guide for Stakeholders
Unlock Business Success: Profit, Loss & Balance Sheet Explained
Unlock The Secrets To Understanding Business Assets: Tangible Vs Intangible
Unlock The Secrets Of Business Liabilities: Current Vs Non-Current Explained!
Unlock The Secrets Of Business Equity: Share Capital Vs Retained Earnings
Unlock The Power Of Intangible Assets For Long-Term Success
Understanding Depreciation: Methods & Impacts on Assets
Understanding Final Accounts: A Comprehensive Checklist
Unlocking BPT Ltd's Financial Insights: An In-depth Analysis
Unlocking Financial Insights: Ratio Analysis Explained
Unlocking Profitability: Key Ratios & Strategies Explained
Mastering Liquidity Ratios: Current Vs. Acid Test Explained
Unlocking Financial Insights: Mastering Ratio Analysis Tools
Master WAW's Financial Analysis: Tips & Insights
Unlocking Business Potential: Understanding Efficiency Ratios
Navigate Insolvency Vs. Bankruptcy: Your Ultimate Guide To Financial Recovery
Master The Art Of Efficiency Ratios: Unlock Financial Success In Business
Understanding CB Ltd's Insolvency Dilemma: A Deep Dive
Profit Vs. Cash Flow: Key Differences Explained!
Mastering Cash Flow Forecasts Predict Future Finances
Understanding Investment, Profit, & Cash Flow: A Deep Dive
Unlocking Business Success: Cash Flow vs. Profit Explained
Unlocking NPF's Financial Future: Case Analysis & Insights
Unlocking Investment Appraisal: Key Methods & Insights
Understanding Net Present Value (NPV): A Comprehensive Guide
Unlocking Investment Appraisal: Techniques & Insights
EEB Hotel Reservations: A Deep Dive Into Investment Appraisals
Understanding Cost & Profit Centres: Boosting Business Efficiency
Mastering Budget Construction: Key Terms Explained
Mastering Variance Analysis: Favorable Vs. Adverse Insights
Unlocking Business Success: Budgets & Variances In Decision-Making
Mastering Business Finances: Budgets, Cost & Profit Centres Explained
Unlocking KJC Ltd's Sales Mystery: A Deep Dive Into Variance Analysis
Unit 4 - Marketing - QB
Unit 4 - Marketing - QB
Unit 5 - Operations management - QB
Unit 5 - Operations management - QB
Unit 6 - Assessment
Unit 6 - Assessment
IB Resources
Unit 3 - Finance & accounts - QB
Business Management HL
Business Management HL

Unit 3 - Finance & accounts - QB

EEB Hotel Reservations: A Deep Dive Into Investment Appraisals

Word Count Emoji
699 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited on 5th Nov 2024

Table of content

Meet EEB, an online hotel reservation service that is a hit among customers! The EEB team is made up of hardworking, motivated employees who've received applause for their fantastic customer service. However, it's time for an upgrade due to more customers, tougher competition, and evolving technology.

 

Maia, the finance director, has two options on the table

  • Option A: Purchase the "Book-Fast" software from a local designer.
  • Option B: Buy new computers from abroad, loaded with the "Global Reach" software.

Maia is thinking about doing an "investment appraisal" for both options. What's that, you ask? Let's dive in!

Investment appraisal

Investment Appraisal is like trying on shoes before you buy them. You want to know whether it's a good idea to invest your money in something. So, you look at factors like the cost, the potential benefits, and how long it will take to get your money back. Essentially, it's a process of evaluating the attractiveness of an investment opportunity.

Payback period for option a

This is like asking, "How long will it take for these shoes to pay for themselves?" If the shoes help you win a marathon, that prize money might just cover the cost!

 

(Unfortunately, we don't have the cost and annual cash inflow information, so we can't calculate the payback period here.)

Average rate of return (ARR) for option b

ARR is like looking at how much you're expected to win in each marathon over the lifetime of those shoes. It shows the average annual profit you'll get from your investment, as a percentage of the initial cost.

 

(We don't have the relevant numbers, so we can't calculate the ARR for Option B here.)

Unlock the Full Content! File Is Locked Emoji

Dive deeper and gain exclusive access to premium files of Business Management HL. Subscribe now and get closer to that 45 🌟

Nail IB's App Icon
IB Resources
Unit 3 - Finance & accounts - QB
Business Management HL
Business Management HL

Unit 3 - Finance & accounts - QB

EEB Hotel Reservations: A Deep Dive Into Investment Appraisals

Word Count Emoji
699 words
Reading Time Emoji
4 mins read
Updated at Emoji
Last edited on 5th Nov 2024

Table of content

Meet EEB, an online hotel reservation service that is a hit among customers! The EEB team is made up of hardworking, motivated employees who've received applause for their fantastic customer service. However, it's time for an upgrade due to more customers, tougher competition, and evolving technology.

 

Maia, the finance director, has two options on the table

  • Option A: Purchase the "Book-Fast" software from a local designer.
  • Option B: Buy new computers from abroad, loaded with the "Global Reach" software.

Maia is thinking about doing an "investment appraisal" for both options. What's that, you ask? Let's dive in!

Investment appraisal

Investment Appraisal is like trying on shoes before you buy them. You want to know whether it's a good idea to invest your money in something. So, you look at factors like the cost, the potential benefits, and how long it will take to get your money back. Essentially, it's a process of evaluating the attractiveness of an investment opportunity.

Payback period for option a

This is like asking, "How long will it take for these shoes to pay for themselves?" If the shoes help you win a marathon, that prize money might just cover the cost!

 

(Unfortunately, we don't have the cost and annual cash inflow information, so we can't calculate the payback period here.)

Average rate of return (ARR) for option b

ARR is like looking at how much you're expected to win in each marathon over the lifetime of those shoes. It shows the average annual profit you'll get from your investment, as a percentage of the initial cost.

 

(We don't have the relevant numbers, so we can't calculate the ARR for Option B here.)

Unlock the Full Content! File Is Locked Emoji

Dive deeper and gain exclusive access to premium files of Business Management HL. Subscribe now and get closer to that 45 🌟

AI Assist

Expand

AI Avatar
Hello there,
how can I help you today?