3.3 Decision-making Techniques

Quantitative sales forecasting involves looking at which kind of data?

• quantitative

  data

• time-series

  data

• numerical

  data

• objective

  data

In quantitative ___ forecasting, time-series data can help to identify upwards, downwards and constant ___.

In quantitative sales forecasting, you must calculate a particular type of average in order to work out a trend.

What is the name of this average?

In _________ sales forecasting, you must draw a line of best fit accurately.

The line must:

- pass through the X coordinate equal to the average ____

- pass through the Y coordinate equal to the average ____.

What is meant by investment appraisal?

In investment appraisal, businesses compare the capital cost of the investment with what?

• profit margins

• net cash flow

• sales revenue

• total costs

In investment appraisal, the _______ period is how long it takes for the project to pay back its initial outlay.

To find this, you must calculate the _______ net cash flow, which takes into account the initial outlay.

To find the average rate of return (ARR), you must divide the annual net profit by what?

• the

  capital

  gain

• the

  capital

  outlay

• the

  working

  capital

• the

  venture

  capital

Explain why calculating the average rate of return (ARR) is useful when it comes to investment appraisal.

In investment appraisal, businesses need to show how much future profits will be worth in terms of their _____ value.

This value is known as its NPV (____ Present Value).

It can be found by using a ______ table, which shows how much a future value must be multiplied to find its present value.