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?

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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?

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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.

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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.