Project A has an ARR of 14% and Project B has an ARR of 11%. Which conclusion is most accurate?
Project A must be chosen because ARR measures every business risk and gives a complete decision without qualitative evidence
Project B must be chosen because a lower ARR always means lower cost
Both projects are equally suitable because both have positive returns
Project A has the higher forecast return, but finance, risk and qualitative evidence still matter
37 exam-style questions on Edexcel GCSE Business 2.4 Making financial decisions, covering 2.4.1a Gross and net profit, 2.4.1b Margins and average rate of return, 2.4.2a Using quantitative business data, 2.4.2b Financial information: understanding performance, and 2.4.2c Financial information: making business decisions. Each one has a worked solution and a mark scheme showing where the marks go.