Which of the following statements about investment appraisal techniques are true? (Select all that apply.)
Answer Options:
Option B is correct — ROCE is expressed as a percentage (p.87).
Option C is correct — Payback Analysis only considers the break-even point (p.83).
Option D is correct — IRR and NPV are often used together (p.82).
Option A is incorrect — Profit maximization is not the primary focus of non-discounted cash flow methods. [P.82-87]
Why might a Public Sector Organisation use a PPP style of contract to build a new police station? Select ALL that apply.
PPP contracts are used when budgets are tight and to monetise under-performing assets. They are not mandated by law nor do they inherently ensure high quality or less administration.
At what stage in a program’s lifecycle is an Investment Appraisal conducted?
Answer Options:
Investment Appraisal is performed before a program is approved (p.69). It evaluates whether the project is financially viable and likely to provide a return on investment. Option B relates to procurement, and Options C and D are post-implementation assessments. [P.69]
Which of the following is NOT a benefit or function of a professional body?
Professional bodies are established organizations that promote industry standards, ethical conduct, and professional development.
Answer Options:
Professional bodies do NOT control pricing in the industry, as this would be market interference. Governance, productivity improvements, and networking are valid functions. [P.31]
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