File "net-present-value-npv-hl-2.html"
Path: /ThinkIB/bm_econ/businessmanagement/page/44519/net-present-value-npv-hl-2html
File size: 137.17 KB
MIME-type: text/html
Charset: utf-8
<!DOCTYPE html>
<html lang="en">
<head>
<!-- Google Tag Manager -->
<script>(function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':
new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],
j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src=
'https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);
})(window,document,'script','dataLayer','GTM-K5VSFSN');
</script>
<!-- End Google Tag Manager -->
<meta http-equiv="x-ua-compatible" content="IE=Edge">
<title>DP Business Management: Net present value (NPV) (HL)</title>
<meta charset="utf-8">
<meta name="viewport" content="width=device-width, initial-scale=1.0">
<meta name="robots" content="none"><meta name="robots" content="noindex, nofollow">
<!-- Removed by WebCopy --><!--<base href="https://www.student.thinkib.net">--><!-- Removed by WebCopy --><meta name="keywords" content="Business Management, ThinkIB.net, InThinking, IB, IBDP, IBMYP"><meta name="description" content="Net present value (NPV) (HL). ThinkIB.net Business Management is an InThinking website.">
<link href="../../../css/bootstrap.min-1.css" rel="stylesheet" media="screen">
<link href="../../../css/font-awesome-4.7.0/css/font-awesome.min-1.css" rel="stylesheet">
<link href="../../../css/top-nav.min-1.css?v=202305221900" rel="stylesheet" media="screen">
<link href="../../../css/style.min-1.css?v=202308071530" rel="stylesheet" media="screen">
<link href="../../../css/style-ib.min-1.css?v=202305221900" rel="stylesheet" media="screen">
<link rel="stylesheet" type="text/css" href="../../../js/jq-fancybox/jquery.fancybox.min-1.css">
<link href="../../../js/jq-fancybox/jquery.fancybox.min-1.css" type="text/css" rel="stylesheet">
<link rel="stylesheet" href="../../../css/side-nav.min-1.css?v=202305221900"><link rel="stylesheet" href="../../../assets/css/ckeditor5-custom-1.css" type="text/css"><link rel="stylesheet" href="../../../css/std-access.min-1.css?v=202305221900"><link rel="stylesheet" href="../../../css/snippets.min-1.css?v=202305221900"><link rel="stylesheet" href="../../../css/article.min-1.css?v=2023061230"><script src="../../../js/localdates.min-1.js?v=202009290900"></script><script src="../../../js/ifvisible.min-1.js"></script><script>ifvisible.setIdleDuration(300);</script><script>var tibSitename = "businessmanagement";</script>
<script>
const SITE_TAG = "ib"
const SITE_WEB = "ThinkIB.net"
const SITE_DOMAIN = "www.thinkib.net"
const SITE_URI = "https://thinkib.net"
const SITE_CLIENT_CODE = "TIB000001"
let imageThinker = "https://assets.inthinking.net/thinkib/header-thinker-ib.svg";
let imageStudent = "https://assets.inthinking.net/thinkib/header-student-thinkib.svg";
</script>
<script>var userHash = "1164ffdb5b0fa1709243f22ebefcb0a3", userTicket = "fd6a5e8a06cfccf2";</script><script src="../../../js/user/local-stats.min-1.js?v=202102101800"></script><link rel="apple-touch-icon-precomposed" sizes="57x57" href="../../../thinkib/favicon/student-thinkib/apple-touch-icon-57x57-1.png"><link rel="apple-touch-icon-precomposed" sizes="114x114" href="../../../thinkib/favicon/student-thinkib/apple-touch-icon-114x114-1.png"><link rel="apple-touch-icon-precomposed" sizes="72x72" href="../../../thinkib/favicon/student-thinkib/apple-touch-icon-72x72-1.png"><link rel="apple-touch-icon-precomposed" sizes="144x144" href="../../../thinkib/favicon/student-thinkib/apple-touch-icon-144x144-1.png"><link rel="apple-touch-icon-precomposed" sizes="60x60" href="../../../thinkib/favicon/student-thinkib/apple-touch-icon-60x60-1.png"><link rel="apple-touch-icon-precomposed" sizes="120x120" href="../../../thinkib/favicon/student-thinkib/apple-touch-icon-120x120-1.png"><link rel="apple-touch-icon-precomposed" sizes="76x76" href="../../../thinkib/favicon/student-thinkib/apple-touch-icon-76x76-1.png"><link rel="apple-touch-icon-precomposed" sizes="152x152" href="../../../thinkib/favicon/student-thinkib/apple-touch-icon-152x152-1.png"><link rel="icon" type="image/png" href="../../../thinkib/favicon/student-thinkib/favicon-196x196-1.png" sizes="196x196"><link rel="icon" type="image/png" href="../../../thinkib/favicon/student-thinkib/favicon-96x96-1.png" sizes="96x96"><link rel="icon" type="image/png" href="../../../thinkib/favicon/student-thinkib/favicon-32x32-1.png" sizes="32x32"><link rel="icon" type="image/png" href="../../../thinkib/favicon/student-thinkib/favicon-16x16-1.png" sizes="16x16"><link rel="icon" type="image/png" href="../../../thinkib/favicon/student-thinkib/favicon-128-1.png" sizes="128x128"><meta name="application-name" content=" "><meta name="msapplication-TileColor" content="#FFFFFF"><meta name="msapplication-TileImage" content="https://assets.inthinking.net/thinkib/favicon/student-thinkib/mstile-144x144.png"><meta name="msapplication-square70x70logo" content="https://assets.inthinking.net/thinkib/favicon/student-thinkib/mstile-70x70.png"><meta name="msapplication-square150x150logo" content="https://assets.inthinking.net/thinkib/favicon/student-thinkib/mstile-150x150.png"><meta name="msapplication-wide310x150logo" content="https://assets.inthinking.net/thinkib/favicon/student-thinkib/mstile-310x150.png"><meta name="msapplication-square310x310logo" content="https://assets.inthinking.net/thinkib/favicon/student-thinkib/mstile-310x310.png">
</head>
<body onunload="" class="student-access">
<!-- Google Tag Manager (noscript) -->
<noscript><iframe src="https://www.googletagmanager.com/ns.html?id=GTM-K5VSFSN" height="0" width="0" style="display:none;visibility:hidden"></iframe></noscript>
<!-- End Google Tag Manager (noscript) -->
<div id="header">
<div class="wmap">
<div class="layout-wrapper">
<div class="container-fluid">
<div class="pull-right visible-phone">
<a href="https://www.inthinking.net">
<img src="../../../thinkib/header-logo-1.svg" style="height: 45px; width: auto">
</a>
</div>
<div class="visible-phone" style="clear:both;"></div>
<div class="pull-left">
<h1><a href="../../../businessmanagement-3.html?lg=51192"><span style="font-size: .8em;font-family: 'Helvetica Narrow','Arial Narrow',Tahoma,Arial,Helvetica,sans-serif;font-stretch: condensed;letter-spacing: -1px">IBDP Business Management - Student pages</span></a></h1>
<p class="slogan hidden-phone"><span class="slogan"><em>InThinking</em> Subject Sites for teachers & their classes</span></p>
<p class="hidden-phone"><em>Group: 2<br>Teacher: </em></p>
</div>
<div class="pull-right text-right">
<a class="hidden-phone" href="https://www.inthinking.net">
<img src="../../../thinkib/header-logo-1.svg" style="height: 70px; width: auto">
</a>
<div class="search"><a href="#" class="toggle-menu-search" data-toggle="dropdown" title="Search"><i class="fa fa-2x fa-search"></i></a></div>
</div>
</div>
</div>
</div>
</div>
<div id="topmenu">
<div class="layout-wrapper">
<div>
<nav class="top-nav"><ul class="level-0"><li><a href="../../../businessmanagement-3.html?lg=51192"><i class="fa fa-home"></i> Home</a></li><li><a href="../38862/getting-started.html">Getting started</a></li><li><a href="../45691/old-course-n23.html">Old course (N23)</a></li><li><a href="../43522/unit-1-intro-to-bm.html">Unit 1 - Intro to BM</a></li><li><a href="../43530/unit-2-hrm.html">Unit 2 - HRM</a></li><li class="selected"><a href="../43545/unit-3-finance.html">Unit 3 - Finance</a></li><li><a href="../43547/unit-4-marketing.html">Unit 4 - Marketing</a></li><li><a href="../43565/unit-5-operations-mgt.html">Unit 5 - Operations Mgt</a></li><li><a href="../43603/exams.html">Exams</a></li><li><a href="../33955/the-core.html">The Core</a></li><li><a href="../22100/misc.html">Misc</a></li></ul></nav>
</div>
</div>
</div>
<nav id="nav-menu-search" class="shadow-md" style="display: none;">
<div class="layout-wrapper">
<form class="form-inline" role="search" method="get" action="businessmanagement/search">
<input id="nav-search" name="s" type="search" placeholder="Search Business Management..." value="">
<button class="btn btn-sm btn-primary" type="submit">
Search
</button>
<a href="#" class="toggle-menu-search" title="Close">
<i class="fa fa-lg fa-times gray"></i>
</a>
</form>
</div>
</nav>
<div class="layout-wrapper">
<div id="container" class="container-fluid">
<div id="content">
<div class="row-fluid">
<div id="left-column" class="span3"> <div id="userbox">
<div class="dropdown" style="display: flex; align-items: center;">
<a href="#" data-toggle="dropdown" class="dropdown-toggle btn">
<img style="width: 16px; height: 16px; margin: -2px 0 0 0;" src="../../../thinkib/user/generic/32-generic-user-1.png">
IB Docs (2) Team <i class="fa fa-caret-down"></i>
</a>
<ul class="dropdown-menu" id="menu1">
<li class="dropdown-submenu"><a href="#" data-toggle="dropdown" class="dropdown-toggle"><i class="fa fa-caret-right fixwidth gray"></i> IBDP Business Management</a><ul class="dropdown-menu" style="padding: 0; border-radius: 3px; margin-left: -4px; margin-top: -1px;"><li><a href="../../../businessmanagement-2.html?lg=51189"><i class="fa fa-group gray fixwidth"></i> 1</a></li><li><a href="../../../businessmanagement-3.html?lg=51192"><i class="fa fa-group gray fixwidth"></i> 2</a></li></ul></li><li><a href="../../../economics-4.html?lg=50735"><i class="fa fa-caret-right fixwidth gray"></i> IBDP Economics</a></li><li class="divider"></li><li><a href="../../../index.htm"><i class="fa fa-dashboard fixwidth colored"></i> Dashboard</a></li><li><a href="../../../index-1.htm?pan=tasks"><i class="fa fa-pencil fixwidth colored"></i> All tasks</a></li><li><a href="../../../index.htm"><i class="fa fa-user fixwidth colored"></i> My profile</a></li>
<li class="divider"></li>
<li>
<a href="../../../index.htm?logout=1">
<i class="fa fa-power-off fixwidth"></i> Log out
</a>
</li>
</ul>
</div>
</div><div id="std-side-box" data-pid="1297" style="background: #f6f6f6; margin-bottom: 20px;"><div id="usernav" style="margin: 0; padding: 0px;"> <div class="row-fluid accordion-group" style="border: 0px; margin-bottom: 0px;"> <div class="" style="padding: 6px 4px 6px 8px; background: #E89C12;"> <a class="accordion-toggle std-header" style="color: #fff; text-shadow: 1px 1px 1px #444; padding: 0px; text-decoration: none; font-size: 16px; font-weight: 400; " data-toggle="collapse" data-parent="#usernav" href="#side-box-content-assignments"> <i class="fa fa-caret-right white" style="margin-left: 4px;"></i> Tasks </a> </div> <div id="side-box-content-assignments" class="accordion-body collapse"> <div class="accordion-inner" style="line-height: 1.7em;"></div></div></div></div></div><div style="margin: 20px 0;"><a href="../../sitemap.html" class="btn btn-default btn-block"><i class="fa fa-sitemap fixwidth colored"></i>Sitemap</a></div><div id="topicsnav" style="margin: 0; padding: 0px;"> <div class="row-fluid accordion-group" style="border: 0px; margin-bottom: 0px;"> <div style="padding: 6px 4px 6px 8px; background: #204a87;"> <a class="accordion-toggle std-header" style="color: #fff; text-shadow: 1px 1px 1px #444; padding: 0px; text-decoration: none; font-size: 16px; font-weight: 400;" data-toggle="collapse" data-parent="#topicsnav" href="#side-box-topics-list"> <i class="fa fa-caret-right fa-rotate-90 white" style="margin-left: 4px;"></i> Topics </a> <span id="sidetreecontrol"> <a title="Collapse all" rel="collapse" href="#"> <i class="fa fa-minus-circle"></i> </a> <a title="Expand all" rel="expand" href="#"> <i class="fa fa-plus-circle"></i> </a> </span> </div> <div id="side-box-topics-list" class="accordion-body in collapse"> <div class="accordion-inner" style="line-height: 1.7em; padding: 0;"> <nav class="side-nav" id="sidemenu"><ul class="level-0 always-expanded"><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../38862/getting-started.html" title="Getting started">Getting started</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21712/resources-for-ib-dp-business-management.html" title="Resources for IB DP Business Management">Resources for IB DP Business Management</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../45691/old-course-n23.html" title="Old course (N23)">Old course (N23)</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21706/unit-1.html" title="Unit 1">Unit 1</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21759/11-introduction-to-business-management.html" title="1.1 Introduction to business management">1.1 Introduction to business management</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24086/the-role-of-businesses-in-combining-resources-to-create-goods-se.html" title="The role of businesses in combining resources to create goods & services">The role of businesses in combining resources to create goods & services</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24088/business-functions-their-roles.html" title="Business functions & their roles">Business functions & their roles</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24089/primary-secondary-tertiary-quaternary-sectors.html" title="Primary, secondary, tertiary & quaternary sectors">Primary, secondary, tertiary & quaternary sectors</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24090/the-role-of-entrepreneurship-intrapreneurship.html" title="The role of entrepreneurship & intrapreneurship">The role of entrepreneurship & intrapreneurship</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../30793/11-comprehension-questions.html" title="1.1 Comprehension questions">1.1 Comprehension questions</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24499/glossary-introduction-to-business-management.html" title="Glossary: Introduction to business management">Glossary: Introduction to business management</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21766/12-types-of-organizations.html" title="1.2 Types of organizations">1.2 Types of organizations</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22276/the-private-and-the-public-sectors.html" title="The private and the public sectors">The private and the public sectors</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23648/types-of-for-profit-commercial-organizations.html" title="Types of for-profit (commercial) organizations">Types of for-profit (commercial) organizations</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23658/types-of-for-profit-social-enterprises.html" title="Types of for-profit social enterprises">Types of for-profit social enterprises</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23713/types-of-non-profit-social-enterprises.html" title="Types of non-profit social enterprises">Types of non-profit social enterprises</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../30794/12-comprehension-questions.html" title="1.2 Comprehension questions">1.2 Comprehension questions</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/390406.html" title="1.2 Smart quiz questions">1.2 Smart quiz questions</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../32862/12-types-of-organizations-question-bank.html" title="1.2 Types of organizations - Question bank">1.2 Types of organizations - Question bank</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23724/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21761/13-organizational-objectives.html" title="1.3 Organizational objectives">1.3 Organizational objectives</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22221/vision-and-mission-statements.html" title="Vision and mission statements">Vision and mission statements</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22232/aims-objectives-strategies-tactics.html" title="Aims, objectives, strategies & tactics">Aims, objectives, strategies & tactics</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../30796/13-comprehension-questions.html" title="1.3 Comprehension questions">1.3 Comprehension questions</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22238/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21762/14-stakeholders.html" title="1.4 Stakeholders">1.4 Stakeholders</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22259/the-interests-of-stakeholders.html" title="The interests of stakeholders">The interests of stakeholders</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22264/stakeholder-conflict.html" title="Stakeholder conflict">Stakeholder conflict</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../30801/14-comprehension-questions.html" title="1.4 Comprehension Questions">1.4 Comprehension Questions</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/396015.html" title="1.4 Smart quiz questions">1.4 Smart quiz questions</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../32858/14-stakeholders-question-bank.html" title="1.4 Stakeholders - Question bank">1.4 Stakeholders - Question bank</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../21946/glossary-stakeholders.html" title="Glossary - Stakeholders">Glossary - Stakeholders</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21763/15-external-environment.html" title="1.5 External environment">1.5 External environment</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24494/glossary-external-environment.html" title="Glossary: External environment">Glossary: External environment</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="1.6 Growth and evolution">1.6 Growth and evolution</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22300/mncs-quiz.html" title="MNCs Quiz">MNCs Quiz</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24021/glossary-growth-and-evolution.html" title="Glossary: Growth and evolution">Glossary: Growth and evolution</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21765/17-organizational-planning-tools-hl-only.html" title="1.7 Organizational planning tools (HL only)">1.7 Organizational planning tools (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24500/glossary-organizational-planning-tools-hl.html" title="Glossary: Organizational planning tools (HL)">Glossary: Organizational planning tools (HL)</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21699/unit-2.html" title="Unit 2">Unit 2</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21753/21-functions-evolution-of-hrm.html" title="2.1 Functions & evolution of HRM">2.1 Functions & evolution of HRM</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25388/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21754/22-organizational-structure.html" title="2.2 Organizational structure">2.2 Organizational structure</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25471/glossary-organizational-structure.html" title="Glossary: Organizational structure">Glossary: Organizational structure</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21755/23-leadership-and-management.html" title="2.3 Leadership and management">2.3 Leadership and management</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24733/glossary-leadership-management.html" title="Glossary: Leadership & Management">Glossary: Leadership & Management</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../24745/24-motivation.html" title="2.4 Motivation">2.4 Motivation</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24719/glossary-motivation.html" title="Glossary: Motivation">Glossary: Motivation</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21757/25-organizational-culture-hl-only.html" title="2.5 Organizational culture (HL only)">2.5 Organizational culture (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25243/glossary-organizational-culture.html" title="Glossary: Organizational culture">Glossary: Organizational culture</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21758/26-industrialemployee-relations-hl-only.html" title="2.6 Industrial/employee relations (HL only)">2.6 Industrial/employee relations (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25125/glossary-industrialemployee-relations.html" title="Glossary: Industrial/employee relations">Glossary: Industrial/employee relations</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21670/unit-3.html" title="Unit 3">Unit 3</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21744/31-sources-of-finance.html" title="3.1 Sources of finance">3.1 Sources of finance</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24501/glossary-sources-of-finance.html" title="Glossary: Sources of finance">Glossary: Sources of finance</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21745/32-costs-and-revenues.html" title="3.2 Costs and revenues">3.2 Costs and revenues</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22092/glossary-costs-revenues.html" title="Glossary: Costs & revenues">Glossary: Costs & revenues</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21746/33-break-even-analysis.html" title="3.3 Break-even analysis">3.3 Break-even analysis</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22270/contribution-analysis.html" title="Contribution analysis">Contribution analysis</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22093/glossary-break-even-analysis.html" title="Glossary: Break-even analysis">Glossary: Break-even analysis</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21747/34-final-accounts.html" title="3.4 Final accounts">3.4 Final accounts</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31367/glossary-final-accounts.html" title="Glossary: Final accounts">Glossary: Final accounts</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21748/35-profitability-and-liquidity-ratio-analysis.html" title="3.5 Profitability and liquidity ratio analysis">3.5 Profitability and liquidity ratio analysis</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25111/glossary-profitability-and-liquidity-ratio-analysis.html" title="Glossary: Profitability and liquidity ratio analysis">Glossary: Profitability and liquidity ratio analysis</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21749/36-efficiency-ratio-analysis-hl-only.html" title="3.6 Efficiency ratio analysis (HL only)">3.6 Efficiency ratio analysis (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25114/glossary-efficiency-ratios.html" title="Glossary: Efficiency ratios">Glossary: Efficiency ratios</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21750/37-cash-flow.html" title="3.7 Cash flow">3.7 Cash flow</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25118/cash-flow-forecasts.html" title="Cash flow forecasts">Cash flow forecasts</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31376/glossary-cash-flow.html" title="Glossary: Cash flow">Glossary: Cash flow</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21751/38-investment-appraisal.html" title="3.8 Investment appraisal">3.8 Investment appraisal</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31377/glossary-investment-appraisal-.html" title="Glossary: Investment appraisal ">Glossary: Investment appraisal </a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21752/39-budgets-hl-only.html" title="3.9 Budgets (HL only)">3.9 Budgets (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../31378/39-budgets-hl-only-glossary.html" title="3.9 Budgets (HL Only) Glossary">3.9 Budgets (HL Only) Glossary</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21684/unit-4.html" title="Unit 4">Unit 4</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21767/41-the-role-of-marketing.html" title="4.1 The role of marketing">4.1 The role of marketing</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25618/glossary-the-role-of-marketing.html" title="Glossary: The role of marketing">Glossary: The role of marketing</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21768/42-marketing-planning.html" title="4.2 Marketing planning">4.2 Marketing planning</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../28328/glossary-marketing-planning.html" title="Glossary: Marketing planning">Glossary: Marketing planning</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21769/43-sales-forecasting-hl-only.html" title="4.3 Sales forecasting (HL only)">4.3 Sales forecasting (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25713/glossary-sales-forecasting.html" title="Glossary: Sales forecasting">Glossary: Sales forecasting</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21713/44-market-research.html" title="4.4 Market research">4.4 Market research</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25208/glossary-market-research.html" title="Glossary: Market research">Glossary: Market research</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21770/45-the-four-ps.html" title="4.5 The four Ps">4.5 The four Ps</a></li><ul class="level-3 "><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Product">Product</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../22627/glossary-product.html" title="Glossary: Product">Glossary: Product</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22525/price.html" title="Price">Price</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../22548/glossary-price.html" title="Glossary: Price">Glossary: Price</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22567/promotion.html" title="Promotion">Promotion</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../22704/45-promotion-glossary.html" title="4.5 Promotion - Glossary">4.5 Promotion - Glossary</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22745/place.html" title="Place">Place</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../23813/45-place-glossary.html" title="4.5 Place - Glossary">4.5 Place - Glossary</a></li></ul></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21774/46-the-extended-marketing-mix-7-ps-hl.html" title="4.6 The extended marketing mix (7 Ps) (HL)">4.6 The extended marketing mix (7 Ps) (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23814/glossary-the-extended-marketing-mix-hl.html" title="Glossary: The extended marketing mix (HL)">Glossary: The extended marketing mix (HL)</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21772/47-international-marketing-hl-only.html" title="4.7 International marketing (HL only)">4.7 International marketing (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23815/glossary-international-marketing-hl.html" title="Glossary: International Marketing (HL)">Glossary: International Marketing (HL)</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21773/48-e-commerce.html" title="4.8 E-commerce">4.8 E-commerce</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../23797/glossary-e-commerce.html" title="Glossary: E-commerce">Glossary: E-commerce</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21688/unit-5.html" title="Unit 5">Unit 5</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21937/51-the-role-of-operations-management.html" title="5.1 The role of operations management">5.1 The role of operations management</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24843/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21938/52-production-methods.html" title="5.2 Production methods">5.2 Production methods</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24848/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21939/53-lean-production-quality-management-hl.html" title="5.3 Lean production & quality management (HL)">5.3 Lean production & quality management (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24839/glossary-lean-production-and-quality-management.html" title="Glossary: Lean Production and quality management">Glossary: Lean Production and quality management</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21700/54-location.html" title="5.4 Location">5.4 Location</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24959/glossary.html" title="Glossary">Glossary</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21695/55-production-planning-hl.html" title="5.5 Production planning (HL)">5.5 Production planning (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25032/glossary-production-planning.html" title="Glossary: Production planning">Glossary: Production planning</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../33222/56-research-development-hl.html" title="5.6 Research & development (HL)">5.6 Research & development (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../34014/glossary-research-development.html" title="Glossary: Research & Development">Glossary: Research & Development</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21941/57-crisis-management-contingency-planning-hl.html" title="5.7 Crisis management & contingency planning (HL)">5.7 Crisis management & contingency planning (HL)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25042/glossary.html" title="Glossary">Glossary</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../25115/cuegis.html" title="CUEGIS">CUEGIS</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="The 6 CUEGIS concepts">The 6 CUEGIS concepts</a></li><ul class="level-3 "><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Ethics">Ethics</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../21954/mcdonalds-supersize-me.html" title="McDonald's - Supersize Me">McDonald's - Supersize Me</a></li></ul></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="The CUEGIS essay">The CUEGIS essay</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22876/planning-your-cuegis-essay.html" title="Planning your CUEGIS essay">Planning your CUEGIS essay</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../33806/paper-2-section-c-questions.html" title="Paper 2 Section C Questions">Paper 2 Section C Questions</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../33959/the-ia.html" title="The IA">The IA</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="HL IA">HL IA</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22190/35-sample-research-questions-for-the-hl-ia.html" title="35 sample research questions for the HL IA">35 sample research questions for the HL IA</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22200/hl-ia-student-checklist.html" title="HL IA - Student Checklist">HL IA - Student Checklist</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../33508/ia-hl-poster.html" title="IA HL Poster">IA HL Poster</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="SL IA">SL IA</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22146/sl-ia-20-sample-titles.html" title="SL IA - 20 Sample Titles">SL IA - 20 Sample Titles</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38181/faq-about-the-sl-ia.html" title="FAQ about the SL IA">FAQ about the SL IA</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../22114/exams.html" title="Exams">Exams</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../22115/command-terms.html" title="Command Terms">Command Terms</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../36599/glossary-of-key-terms.html" title="Glossary of key terms">Glossary of key terms</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../38059/flashcards-revision.html" title="Flashcards - Revision">Flashcards - Revision</a></li><ul class="level-3 "><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38060/flashcards-revision-unit-1.html" title="Flashcards - Revision (Unit 1)">Flashcards - Revision (Unit 1)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38056/unit-11-revision-flashcards.html" title="Unit 1.1 Revision Flashcards">Unit 1.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38061/unit-12-revision-flashcards.html" title="Unit 1.2 Revision Flashcards">Unit 1.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38067/unit-13-revision-flashcards.html" title="Unit 1.3 Revision Flashcards">Unit 1.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38092/unit-14-revision-flashcards.html" title="Unit 1.4 Revision Flashcards">Unit 1.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38096/unit-15-revision-flashcards.html" title="Unit 1.5 Revision Flashcards">Unit 1.5 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38102/unit-16-revision-flashcards.html" title="Unit 1.6 Revision Flashcards">Unit 1.6 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38103/unit-17-revision-flashcards.html" title="Unit 1.7 Revision Flashcards">Unit 1.7 Revision Flashcards</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38114/flashcards-revision-unit-2.html" title="Flashcards - Revision (Unit 2)">Flashcards - Revision (Unit 2)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38121/unit-21-revision-flashcards.html" title="Unit 2.1 Revision Flashcards">Unit 2.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38125/unit-22-revision-flashcards.html" title="Unit 2.2 Revision Flashcards">Unit 2.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38126/unit-23-revision-flashcards.html" title="Unit 2.3 Revision Flashcards">Unit 2.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38144/unit-24-revision-flashcards.html" title="Unit 2.4 Revision Flashcards">Unit 2.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38146/unit-25-revision-flashcards.html" title="Unit 2.5 Revision Flashcards">Unit 2.5 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38147/unit-26-revision-flashcards-hl-only.html" title="Unit 2.6 Revision Flashcards (HL only)">Unit 2.6 Revision Flashcards (HL only)</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38149/flashcards-revision-unit-3.html" title="Flashcards - Revision (Unit 3)">Flashcards - Revision (Unit 3)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38153/unit-31-revision-flashcards.html" title="Unit 3.1 Revision Flashcards">Unit 3.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38154/unit-32-revision-flashcards.html" title="Unit 3.2 Revision Flashcards">Unit 3.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38182/unit-33-revision-flashcards.html" title="Unit 3.3 Revision Flashcards">Unit 3.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38183/unit-34-revision-flashcards.html" title="Unit 3.4 Revision Flashcards">Unit 3.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38191/unit-35-revision-flashcards.html" title="Unit 3.5 Revision Flashcards">Unit 3.5 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38192/unit-36-revision-flashcards-hl.html" title="Unit 3.6 Revision Flashcards (HL)">Unit 3.6 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38193/unit-37-revision-flashcards.html" title="Unit 3.7 Revision Flashcards">Unit 3.7 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38194/unit-38-revision-flashcards.html" title="Unit 3.8 Revision Flashcards">Unit 3.8 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38195/unit-39-revision-flashcards.html" title="Unit 3.9 Revision Flashcards">Unit 3.9 Revision Flashcards</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38196/flashcards-revision-unit-4.html" title="Flashcards - Revision (Unit 4)">Flashcards - Revision (Unit 4)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38198/unit-41-revision-flashcards.html" title="Unit 4.1 Revision Flashcards">Unit 4.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38203/unit-42-revision-flashcards.html" title="Unit 4.2 Revision Flashcards">Unit 4.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38217/unit-43-revision-flashcards.html" title="Unit 4.3 Revision Flashcards">Unit 4.3 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38218/unit-44-revision-flashcards.html" title="Unit 4.4 Revision Flashcards">Unit 4.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38219/unit-45a-product-revision-flashcards.html" title="Unit 4.5a Product Revision Flashcards">Unit 4.5a Product Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38220/unit-45b-price-revision-flashcards.html" title="Unit 4.5b Price Revision Flashcards">Unit 4.5b Price Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38221/unit-45c-promotion-revision-flashcards.html" title="Unit 4.5c Promotion Revision Flashcards">Unit 4.5c Promotion Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38222/unit-45d-promotion-revision-flashcards.html" title="Unit 4.5d Promotion Revision Flashcards">Unit 4.5d Promotion Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38223/unit-46-revision-flashcards-hl.html" title="Unit 4.6 Revision Flashcards (HL)">Unit 4.6 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38224/unit-47-revision-flashcards-hl.html" title="Unit 4.7 Revision Flashcards (HL)">Unit 4.7 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38225/unit-48-e-commerce-flashcards.html" title="Unit 4.8 E-commerce Flashcards">Unit 4.8 E-commerce Flashcards</a></li></ul><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../38232/flashcards-revision-unit-5.html" title="Flashcards - Revision (Unit 5)">Flashcards - Revision (Unit 5)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38233/unit-51-revision-flashcards.html" title="Unit 5.1 Revision Flashcards">Unit 5.1 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38234/unit-52-revision-flashcards.html" title="Unit 5.2 Revision Flashcards">Unit 5.2 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38235/unit-53-revision-flashcards-hl.html" title="Unit 5.3 Revision Flashcards (HL)">Unit 5.3 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38236/unit-54-revision-flashcards.html" title="Unit 5.4 Revision Flashcards">Unit 5.4 Revision Flashcards</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38237/unit-55-revision-flashcards-hl.html" title="Unit 5.5 Revision Flashcards (HL)">Unit 5.5 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38238/unit-56-revision-flashcards-hl.html" title="Unit 5.6 Revision Flashcards (HL)">Unit 5.6 Revision Flashcards (HL)</a></li><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../38239/unit-57-revision-flashcards-hl.html" title="Unit 5.7 Revision Flashcards (HL)">Unit 5.7 Revision Flashcards (HL)</a></li></ul></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../33830/formulae-quiz.html" title="Formulae Quiz">Formulae Quiz</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Paper 1 Pre-release case study">Paper 1 Pre-release case study</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../44969/n22-case-study-ele-plc.html" title="N22 Case Study (ELE PLC)">N22 Case Study (ELE PLC)</a></li><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="M22 (Peacewick Uni)">M22 (Peacewick Uni)</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../44106/additional-exam-questions-paper-1.html" title="Additional exam questions (Paper 1)">Additional exam questions (Paper 1)</a></li></ul><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../32840/may-2020-p-s-trawlers.html" title="May 2020 (P&S Trawlers)">May 2020 (P&S Trawlers)</a></li><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="M23 Paper 1">M23 Paper 1</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../47825/paper-1-svt-study-guide-shirin-karimi.html" title="Paper 1 SVT Study Guide (Shirin Karimi)">Paper 1 SVT Study Guide (Shirin Karimi)</a></li></ul></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../26095/exam-study-tips-resources.html" title="Exam & Study tips (resources)">Exam & Study tips (resources)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../31342/revision-exams-top-tips.html" title="Revision & Exams - Top tips">Revision & Exams - Top tips</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../47460/top-tips-for-m23-exams.html" title="Top Tips for M23 Exams">Top Tips for M23 Exams</a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43522/unit-1-intro-to-bm.html" title="Unit 1 - Intro to BM">Unit 1 - Intro to BM</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44034/11-what-is-a-business.html" title="1.1 What is a business?">1.1 What is a business?</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../../task/399681.html" title="1.2 Types of business entities">1.2 Types of business entities</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44041/13-business-objectives.html" title="1.3 Business objectives">1.3 Business objectives</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44044/14-stakeholders.html" title="1.4 Stakeholders">1.4 Stakeholders</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44045/15-growth-and-evolution.html" title="1.5 Growth and evolution">1.5 Growth and evolution</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44046/16-multinational-companies.html" title="1.6 Multinational companies">1.6 Multinational companies</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43530/unit-2-hrm.html" title="Unit 2 - HRM">Unit 2 - HRM</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44253/21-introduction-to-hrm.html" title="2.1 Introduction to HRM">2.1 Introduction to HRM</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44256/role-of-hrm.html" title="Role of HRM">Role of HRM</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44257/factors-that-influence-hr-planning.html" title="Factors that influence HR planning">Factors that influence HR planning</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44282/reasons-for-resistance-to-change.html" title="Reasons for resistance to change">Reasons for resistance to change</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44283/hr-strategies-for-reducing-the-impact-of-change-resistance-to-ch.html" title="HR strategies for reducing the impact of change & resistance to change">HR strategies for reducing the impact of change & resistance to change</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45458/21-true-or-false-quiz.html" title="2.1 True or False quiz">2.1 True or False quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43677/21-glossary-of-key-terms.html" title="2.1 Glossary of key terms">2.1 Glossary of key terms</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43875/22-organizational-structure.html" title="2.2 Organizational structure">2.2 Organizational structure</a></li><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44338/23-leadership-and-management.html" title="2.3 Leadership and management">2.3 Leadership and management</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45462/23-true-or-false-quiz.html" title="2.3 True or False Quiz">2.3 True or False Quiz</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43829/24-motivation-and-demotivation.html" title="2.4 Motivation and demotivation">2.4 Motivation and demotivation</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44371/types-of-training.html" title="Types of training">Types of training</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44390/25-organizational-corporate-culture-hl.html" title="2.5 Organizational (corporate) culture (HL)">2.5 Organizational (corporate) culture (HL)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44247/26-communication.html" title="2.6 Communication">2.6 Communication</a></li></ul><li class="ancestor parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right fa-rotate-90"></i><a class="" href="../43545/unit-3-finance.html" title="Unit 3 - Finance">Unit 3 - Finance</a></li><ul class="level-1 expanded"><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44435/31-introduction-to-finance.html" title="3.1 Introduction to finance">3.1 Introduction to finance</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44431/31-introduction-to-finance-role-of-finance.html" title="3.1 Introduction to finance - role of finance">3.1 Introduction to finance - role of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45634/31-glossary-of-key-term.html" title="3.1 Glossary of key term">3.1 Glossary of key term</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44436/32-sources-of-finance.html" title="3.2 Sources of finance">3.2 Sources of finance</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44437/internal-sources-of-finance.html" title="Internal sources of finance">Internal sources of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44450/external-sources-of-finance.html" title="External sources of finance">External sources of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44479/appropriateness-of-sources-of-finance.html" title="Appropriateness of sources of finance">Appropriateness of sources of finance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45483/32-true-or-false-quiz.html" title="3.2 True or False Quiz">3.2 True or False Quiz</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../43688/32-glossary-of-key-terms.html" title="3.2 Glossary of key terms">3.2 Glossary of key terms</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44486/33-costs-and-revenues.html" title="3.3 Costs and revenues">3.3 Costs and revenues</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44492/34-final-accounts.html" title="3.4 Final accounts">3.4 Final accounts</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44593/35-profitability-liquidity-ratio-analysis.html" title="3.5 Profitability & liquidity ratio analysis">3.5 Profitability & liquidity ratio analysis</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44627/36-efficiency-ratio-analysis-hl-only.html" title="3.6 Efficiency ratio analysis (HL only)">3.6 Efficiency ratio analysis (HL only)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44493/37-cash-flow.html" title="3.7 Cash flow">3.7 Cash flow</a></li><li class="ancestor parent" style="padding-left: 14px"><i class="expander fa fa-caret-right fa-rotate-90"></i><a class="" href="../44515/38-investment-appraisal.html" title="3.8 Investment appraisal">3.8 Investment appraisal</a></li><ul class="level-2 expanded"><li class="current" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="net-present-value-npv-hl.html" title="Net present value (NPV) (HL)">Net present value (NPV) (HL)</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44564/39-budgets-hl.html" title="3.9 Budgets (HL)">3.9 Budgets (HL)</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43547/unit-4-marketing.html" title="Unit 4 - Marketing">Unit 4 - Marketing</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44637/41-introduction-to-marketing.html" title="4.1 Introduction to marketing">4.1 Introduction to marketing</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43823/42-marketing-planning.html" title="4.2 Marketing planning">4.2 Marketing planning</a></li><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44660/43-sales-forecasting-hl.html" title="4.3 Sales forecasting (HL)">4.3 Sales forecasting (HL)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44669/benefits-limitations-of-sales-forecasting.html" title="Benefits & limitations of sales forecasting">Benefits & limitations of sales forecasting</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44679/44-market-research.html" title="4.4 Market research">4.4 Market research</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44680/why-how-organizations-carry-out-market-research.html" title="Why & how organizations carry out market research">Why & how organizations carry out market research</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44720/45-the-seven-ps-of-the-marketing-mix.html" title="4.5 The seven Ps of the marketing mix">4.5 The seven Ps of the marketing mix</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44740/451-product.html" title="4.5.1 Product">4.5.1 Product</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44782/453-promotion.html" title="4.5.3 Promotion">4.5.3 Promotion</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44697/46-international-marketing-hl.html" title="4.6 International marketing (HL)">4.6 International marketing (HL)</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43565/unit-5-operations-mgt.html" title="Unit 5 - Operations Mgt">Unit 5 - Operations Mgt</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44817/51-introduction-to-operations-management.html" title="5.1 Introduction to operations management">5.1 Introduction to operations management</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44812/52-operations-methods.html" title="5.2 Operations methods">5.2 Operations methods</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44861/53-lean-production-quality-management-hl.html" title="5.3 Lean production & quality management (HL)">5.3 Lean production & quality management (HL)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44840/55-break-even-analysis.html" title="5.5 Break-even analysis">5.5 Break-even analysis</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44890/56-production-planning-hl.html" title="5.6 Production planning (HL)">5.6 Production planning (HL)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45242/57-crisis-management-contingency-planning-hl.html" title="5.7 Crisis management & contingency planning (HL)">5.7 Crisis management & contingency planning (HL)</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45669/59-management-information-systems-hl.html" title="5.9 Management Information Systems (HL)">5.9 Management Information Systems (HL)</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../43603/exams.html" title="Exams">Exams</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../43740/command-terms.html" title="Command terms">Command terms</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45612/glossary-of-key-terms.html" title="Glossary of key terms">Glossary of key terms</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../33955/the-core.html" title="The Core">The Core</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="The EE">The EE</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../32857/ee-planning-form.html" title="EE Planning form">EE Planning form</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../37390/managing-the-ee-process.html" title="Managing the EE process">Managing the EE process</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../25192/tok-bm.html" title="TOK & BM">TOK & BM</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../22100/misc.html" title="Misc">Misc</a></li><ul class="level-1 "><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../22208/how-well-do-you-know-the-bm-course.html" title="How well do you know the BM course?">How well do you know the BM course?</a></li><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Distance Learning">Distance Learning</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../39730/financial-literacy-simulation-game.html" title="Financial literacy simulation game">Financial literacy simulation game</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34551/starter-activities-business-management-trivia-quizzes.html" title="Starter Activities - Business Management Trivia Quizzes">Starter Activities - Business Management Trivia Quizzes</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../33511/glossary-of-key-terms-index.html" title="Glossary of key terms - index">Glossary of key terms - index</a></li><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../36815/revision-key-terms.html" title="Revision - Key terms">Revision - Key terms</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../36818/unit-1-key-terms-business-organization-environment.html" title="Unit 1 Key terms - Business organization & environment">Unit 1 Key terms - Business organization & environment</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../36871/unit-2-key-terms-human-resource-management.html" title="Unit 2 Key terms - Human Resource Management">Unit 2 Key terms - Human Resource Management</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../36874/unit-3-key-terms-finance-accounts.html" title="Unit 3 Key terms - Finance & accounts">Unit 3 Key terms - Finance & accounts</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../36882/unit-4-key-terms-marketing-.html" title="Unit 4 Key terms - Marketing ">Unit 4 Key terms - Marketing </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../36887/unit-5-key-terms-operations-management.html" title="Unit 5 Key terms - Operations management">Unit 5 Key terms - Operations management</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../38055/entrepreneurs-leaders-quiz.html" title="Entrepreneurs & Leaders Quiz">Entrepreneurs & Leaders Quiz</a></li></ul></ul></nav> </div> </div> </div> </div><div style="margin-top: 20px;"><style type="text/css">
.studyib-link {
display: inline-block;
overflow: hidden;
font-size: 1.2em;
font-weight: normal;
margin: 10px;
transition: transform .2s; /* Animation */
}
#left-column .studyib-link {
font-size: 1em;
font-weight: normal;
margin: 5px;
transition: transform .2s; /* Animation */
}
#left-column .studyib-advert h2 {
font-size: 1.35em;
}
.studyib-link:hover {
transform: scale(1.2);
}
.studyib-link > img {
width: 2em; height: 2em;
margin: 0;
float: left;
}
.embed-responsive {
position: relative;
display: block;
height: 0;
padding: 0;
margin: 15px 0;
}
.embed-responsive-16by9 {
padding-bottom: 56.25%;
}
.embed-responsive iframe {
position: absolute;
top: 0;
left: 0;
bottom: 0;
height: 100%;
width: 100%;
border: 0;
}
.studyib-advert {
padding: 20px;
background: #E7EDF5;
border: solid 1px #EFF;
/* margin-left: 70px; */
}
.studyib-advert .heading {
display: flex;
flex-direction: row;
align-items: center;
}
.studyib-advert .heading img {
margin-right: 15px;
}
.studyib-advert .heading span {
color: #444
}
.studyib-advert h2,
.studyib-advert h3 {
margin: 0;
}
.studyib-advert .body {
margin-top: 20px;
}
</style>
<div class="studyib-advert">
<div class="heading">
<img src="../../../thinkib/header-thinker-sib-1.svg" height="50" width="50" class="pull-left" alt="InThinking Revision Sites">
<div>
<h2>INTHINKING REVISION SITES</h2>
<span><em>Own your learning</em></span>
</div>
</div>
<div class="body">
<p>Why not also try our independent learning self-study & revision websites for students?</p>
<p>We currenly offer the following DP Sites: Biology, Chemistry, English A Lang & Lit, Maths A&A, Maths A&I, Physics, Spanish B</p>
<p>
<em>"The site is great for revising the basic understandings of each topic quickly.
Especially since you are able to test yourself at the end of each page and easily see where yo need to improve."</em>
</p>
<p><em>"It is life saving... I am passing IB because of this site!"</em></p>
<p>Basic (limited access) subscriptions are FREE. Check them out at:</p>
<div class="text-center">
<h3>
<a href="//studyib.net">www.StudyIB.net</a>
</h3>
</div>
</div>
</div>
</div></div><!-- /#left-column-->
<div id="main-column" class="span9"> <article id="net-present-value-npv-hl" style="margin-top: 16px;">
<h1 class="section-title">Net present value (NPV) (HL)</h1>
<ul class="breadcrumb"><li><a title="Home" href="../../../businessmanagement.html"><i class="fa fa-home"></i></a><span class="divider">/</span></li><li><span class="gray">Unit 3 - Finance</span><span class="divider">/</span></li><li><span class="gray">3.8 Investment appraisal</span><span class="divider">/</span></li><li><span class="active">Net present value (NPV) (HL)</span></li></ul>
<div class="row-fluid">
<section class="span12" id="main-content">
<div class="panel panel-purple"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><strong>Net present value (NPV) (HLonly), (AO3 and AO4)</strong></p></div></div><div class="panel-body"><div><p><img alt="" src="../../../ib/businessmanagement/images/3-finance/savings-1.jpg" style="width: 300px; height: 170px;"></p><p><strong>Net present value (NPV) </strong>is a method of investment appraisal that calculates the real value (rather than the absolute value) of an investment project by discounting (adjusting) the actual value of money received in the future.</p><p><span style="font-family:arial,helvetica,sans-serif;">The <strong>discount rate</strong> is a figure used to reduce the future value of money. It is used to establish the present value of cash that is yet to be received by the business.</span> Refer to the table below for various discount factors:</p><div><table border="1" cellpadding="0" cellspacing="0" width="621"><tbody><tr><td nowrap="nowrap" style="width:69px;height:17px;"><p align="center"></p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p align="center"><strong>1%</strong></p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p align="center"><strong>2%</strong></p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p align="center"><strong>3%</strong></p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p align="center"><strong>4%</strong></p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p align="center"><strong>5%</strong></p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p align="center"><strong>6%</strong></p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p align="center"><strong>7%</strong></p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p align="center"><strong>8%</strong></p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p align="center"><strong>9%</strong></p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p align="center"><strong>10%</strong></p></td></tr><tr><td nowrap="nowrap" style="width:69px;height:17px;"><p>Year 1</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9901</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9804</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9709</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9615</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9524</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9434</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9346</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9259</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9174</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9091</p></td></tr><tr><td nowrap="nowrap" style="width:69px;height:17px;"><p>Year 2</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9803</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9612</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9426</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9246</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9070</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8900</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8734</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8573</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8417</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8264</p></td></tr><tr><td nowrap="nowrap" style="width:69px;height:17px;"><p>Year 3</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9706</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9423</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9151</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8890</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8638</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8396</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8163</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7938</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7722</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7513</p></td></tr><tr><td nowrap="nowrap" style="width:69px;height:17px;"><p>Year 4</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9610</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9238</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8885</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8548</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8227</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7921</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7629</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7350</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7084</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6830</p></td></tr><tr><td nowrap="nowrap" style="width:69px;height:17px;"><p>Year 5</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9515</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9057</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8626</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8219</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7835</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7473</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7130</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6806</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6499</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6209</p></td></tr><tr><td nowrap="nowrap" style="width:69px;height:17px;"><p>Year 6</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9420</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8880</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8375</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7903</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7462</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7050</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6663</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6302</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5963</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5645</p></td></tr><tr><td nowrap="nowrap" style="width:69px;height:17px;"><p>Year 7</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9327</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8706</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8131</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7599</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7107</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6651</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6227</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5835</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5470</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5132</p></td></tr><tr><td nowrap="nowrap" style="width:69px;height:17px;"><p>Year 8</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9235</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8535</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7894</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7307</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6768</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6274</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5820</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5403</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5019</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.4665</p></td></tr><tr><td nowrap="nowrap" style="width:69px;height:17px;"><p>Year 9</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9143</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8368</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7664</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7026</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6446</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5919</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5439</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5002</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.4604</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.4241</p></td></tr><tr><td nowrap="nowrap" style="width:69px;height:17px;"><p>Year 10</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.9053</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.8203</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.7441</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6756</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.6139</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5584</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.5083</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.4632</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.4224</p></td><td nowrap="nowrap" style="width:55px;height:17px;"><p>0.3855</p></td></tr></tbody></table></div><hr class="hidden"><p>The <strong>net present value (NPV)</strong> is the numerical difference between the total values of future net cash flows expressed in today’s (the present) value and the cost of the investment project or decision. In other words, the NPV is found by adding up the discounted values of all future net cash flows and then deducting the cost of the investment project.</p><p style="text-align: center;"><strong>NPV = Sum of Present Values – Cost of Investment</strong></p><p>So, for example, if the interest rate is 5% per annum, then the present value of receiving $100 in one year’s time is $95.24. This is because investing $95.24 today and earning an annual return of 5% would make the investment valued at $100 in one year’s time. The table above shows that discount rate is 0.9524.</p><div class="greenBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-lightbulb-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Top tip!</span></span></h5><p>HL students will be given the relevant discount factors in the final examinations within the question paper itself (should the Net Present Value be part of the examination paper). There is no need for teachers or examination officers to photocopy the discount table in the IB Business Management syllabus / guide.</p></div><hr class="hidden"><p>One limitation of the <a href="../44516/payback-period-average-rate-of-return-1.html" title="New syllabus 2022 » Unit 3 - Finance and Accounts (WIP) » 3.8 Investment appraisal » Payback period & Average rate of return">average rate of return</a> (ARR) method of investment appraisal is that it does not consider the future value of net cash flow – money received in five years’ time is not worth the same as the money received today. Hence, the projected future cash flows calculated using the ARR method do not accurately reflect the true value of the investment decision.</p><p>By contrast, the NPV figure shows the quantitative value of the overall financial return on an investment decision stated in today’s value of that amount of money. This means that the NPV method of investment appraisal allows managers to consider the opportunity cost of receiving money in the future (acknowledging that future cash flows are worth less than those received today).</p><p>The greater the NPV value, the more feasible the investment proposal / decision becomes, based on financial forecasts. However, the longer the investment project under consideration, the less accurate it becomes to project / forecast future net cash flows – and interest rates are more likely to change over the long term.</p><div class="yellowBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-calculator fa-lg" style="color: rgb(61, 30, 128);"> </span> Worked example</span></span></h5><p>Suppose a large manufacturer is considering whether to spend $800,000 to upgrade its management information system. The projected net cash flow for the 5-year investment is shown below.</p><table border="0" cellpadding="0" cellspacing="0" width="239"><colgroup><col width="64"><col width="175"></colgroup><tbody><tr height="19"><td class="xl65" height="19" style="height: 14.5pt; width: 48pt; text-align: center;" width="64"><strong>Year</strong></td><td class="xl66" style="border-left:none;width:131pt" width="175"><strong>Net cash flow ($)</strong></td></tr><tr height="19"><td class="xl65" height="19" style="height: 14.5pt; border-top: medium none; text-align: center;">1</td><td class="xl66" style="border-top: medium none; border-left: medium none; text-align: center;">100,000</td></tr><tr height="19"><td class="xl65" height="19" style="height: 14.5pt; border-top: medium none; text-align: center;">2</td><td class="xl66" style="border-top: medium none; border-left: medium none; text-align: center;">300,000</td></tr><tr height="19"><td class="xl65" height="19" style="height: 14.5pt; border-top: medium none; text-align: center;">3</td><td class="xl66" style="border-top: medium none; border-left: medium none; text-align: center;">500,000</td></tr><tr height="19"><td class="xl65" height="19" style="height: 14.5pt; border-top: medium none; text-align: center;">4</td><td class="xl66" style="border-top: medium none; border-left: medium none; text-align: center;">300,000</td></tr><tr height="19"><td class="xl65" height="19" style="height: 14.5pt; border-top: medium none; text-align: center;">5</td><td class="xl66" style="border-top: medium none; border-left: medium none; text-align: center;">200,000</td></tr></tbody></table><p>The manufacturer uses a discount rate of 10%. These are shown in the table below. The first step in calculating the NPV is to determine the discounted value of the net cash flow for each year. This is done by multiplying the nominal value of the net cash flow by the discount factor as shown in the table below:</p><table border="0" cellpadding="0" cellspacing="0" width="638"><colgroup><col width="64"><col width="175"><col width="144"><col width="255"></colgroup><tbody><tr height="19"><td class="xl65" height="19" style="height:14.5pt;width:48pt" width="64"><strong>Year</strong></td><td class="xl66" style="border-left:none;width:131pt" width="175"><strong>Net cash flow ($)</strong></td><td class="xl65" style="border-left:none;width:108pt" width="144"><strong>Discount factor</strong></td><td class="xl65" style="border-left:none;width:192pt" width="255"><strong>Discounted net cash flow ($)</strong></td></tr><tr height="19"><td class="xl65" height="19" style="height: 14.5pt; border-top: medium none; text-align: center;">1</td><td class="xl66" style="border-top: medium none; border-left: medium none; text-align: center;">100,000</td><td class="xl67" style="border-top: medium none; border-left: medium none; text-align: center;">0.9091</td><td class="xl68" style="border-top: medium none; border-left: medium none; text-align: center;">90,910</td></tr><tr height="19"><td class="xl65" height="19" style="height: 14.5pt; border-top: medium none; text-align: center;">2</td><td class="xl66" style="border-top: medium none; border-left: medium none; text-align: center;">300,000</td><td class="xl67" style="border-top: medium none; border-left: medium none; text-align: center;">0.8264</td><td class="xl68" style="border-top: medium none; border-left: medium none; text-align: center;">247,920</td></tr><tr height="19"><td class="xl65" height="19" style="height: 14.5pt; border-top: medium none; text-align: center;">3</td><td class="xl66" style="border-top: medium none; border-left: medium none; text-align: center;">500,000</td><td class="xl67" style="border-top: medium none; border-left: medium none; text-align: center;">0.7513</td><td class="xl68" style="border-top: medium none; border-left: medium none; text-align: center;">375,650</td></tr><tr height="19"><td class="xl65" height="19" style="height: 14.5pt; border-top: medium none; text-align: center;">4</td><td class="xl66" style="border-top: medium none; border-left: medium none; text-align: center;">300,000</td><td class="xl67" style="border-top: medium none; border-left: medium none; text-align: center;">0.6830</td><td class="xl68" style="border-top: medium none; border-left: medium none; text-align: center;">204,900</td></tr><tr height="19"><td class="xl65" height="19" style="height: 14.5pt; border-top: medium none; text-align: center;">5</td><td class="xl66" style="border-top: medium none; border-left: medium none; text-align: center;">200,000</td><td class="xl67" style="border-top: medium none; border-left: medium none; text-align: center;">0.6209</td><td class="xl68" style="border-top: medium none; border-left: medium none; text-align: center;">124,180</td></tr></tbody></table><ul class="branded"><li><p>The next step is to then calculate the sum of the discounted net cash flow, i.e., 90,910 + 247,920 + 375,650 + 204,900 + 124,180 = $1,043,560. This figure is known as the <strong>cumulative discounted net cash flow</strong>.</p></li><li><p>To determine the net present value, we minus the cost of the investment from the value of the cumulative discounted net cash flow.</p></li><li><p>Net present value = $1,043,560 – 800,000 = <strong>$243,560</strong></p></li><li><p>This represents the real value, or present value, of the investment.</p></li></ul><p>All things being equal, as the NPV figure is positive, the investment is financially worthwhile.</p></div><hr class="hidden"><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-check-circle-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Advantages of net present value (NPV)</span></h5><ul class="branded"><li><p>The NPV method accounts for the future movements of cash flows from an investment project or decision. By showing these future cash flows expressed in today’s monetary value, it helps managers to make more informed decisions.</p></li><li><p>The NPV method of investment appraisal is more realistic than the ARR, especially for projects that are medium to long term (as the future value of money is worth less than the same amount received today).</p></li><li><p>It enables managers and decision makers to make more informed comparisons between projects of varying durations and with different discount rates on their various investments projects / decisions.</p></li></ul><h5><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-times-circle-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Disadvantages of net present value (NPV)</span></h5><ul class="branded"><li>It is difficult to accurately predict future net cash flows, especially for projects that are medium to long term. Changes in the external business environment (such as a financial crisis or an economic recession) can void such predictions.</li><li>The NPV is more difficult and time consuming to calculate, yet may still prove to be inaccurate given there are so many factors that can change a firm’s net cash flow figures for each time period in an investment appraisal.</li><li>Choosing an accurate discount rate (discount factor) can be subjective at times. Whilst many decision makers choose the rate that reflects the interest rate and/or inflation rate, these can vary significantly over the course of an investment project.</li></ul><div class="yellowBg"><h5><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-linode fa-lg" style="color: rgb(103, 7, 124);"> </span> ATL Activity - The real costs of raising children</span></span></h5><p>This is a fun and memorable activity to introduce the topic of investment appraisal - or to use as a plenary to this topic in the syllabus. Although parents don’t see their children as an ‘investment’, this ATL Activity highlights the need to consider finances as part of the family planning process, similar to the way an organization must consider all associated costs in an investment decision.</p><p>So, what are the real costs of raising children? List as many items of expenditure on children that parents might need to spend their money on. You may choose to use a spreadsheet to present your results.</p><section class="tib-hiddenbox"><p><span style="color:#FF0000;">Some of the expenses that parents might need to fund include a combination of the following:</span></p><ul><li><p><span style="color:#FF0000;">Food, drinks and groceries – from baby nappies (diapers) and milk powder to lunch boxes for school</span></p></li></ul><ul><li><p><span style="color:#FF0000;">Compulsory education (kindergarten, primary and secondary schooling) - costs may include: uniforms, stationery and textbooks; private education, such as boarding school, will obviously inflate the costs for parents</span></p></li></ul><p><img alt="" height="102" src="../../../ib/businessmanagement/images/children---stationery.png" width="300"></p><ul><li><p><span style="color:#FF0000;">Private tuition – such as private music lessons or academic tuition for public exams</span></p></li></ul><ul><li><p><span style="color:#FF0000;">Holidays – additional costs of flights, accommodation, catering and entertainment</span></p></li></ul><ul><li><p><span style="color:#FF0000;">Health care services</span></p></li></ul><ul><li><p><span style="color:#FF0000;">Hobbies – children’s sporting and leisure activities can prove expensive for parents</span></p></li></ul><p> <img alt="" height="123" src="../../../ib/businessmanagement/images/children---sports.png" width="300"></p><ul><li><p><span style="color:#FF0000;">Tertiary education: University fees as well as maintenance costs, such as rent for housing/accommodation</span></p></li><li><p><span style="color:#FF0000;">Driving lessons</span></p></li><li><p><span style="color:#FF0000;">Deposit on a car</span></p></li><li><p><span style="color:#FF0000;">Deposit for first home</span></p></li><li><p><span style="color:#FF0000;">Funds for a gap year.</span></p></li></ul></section><hr class="hidden"><h5><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-search fa-lg" style="color: rgb(103, 7, 124);"> </span> Extension inquiry task</span></span><span style="font-family:arial,helvetica,sans-serif;"></span></h5><p>Ask students to do some research using online sources to substantiate the costs of raising children in a country of their choice.</p><p><img alt="" src="../../../ib/businessmanagement/images/children---savings.png" style="width: 180px;"></p><section class="tib-hiddenbox"><p><span style="color:#FF0000;">Students could be asked to compile the list of all known expenditures in raising a child. They can record this list in a spreadsheet, and populate this with an estimate of the amount of money their parent(s) has/have spent on each item. You may be rather shocked by the results!</span></p><p><span style="color:#FF0000;">Again, although parents do not see their children as 'investments' that need to generate a 'return', this idea is that effective family planning needs to consider the real financial costs of raising children.</span></p></section></div><div class="blueBg"><h5><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-lightbulb-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Top tip!</span></span></h5><p>Remember to always express your calculations and answers in the correct unit of measurement.</p><ul class="branded"><li><p>the payback period is expressed in time (years and months)</p></li><li><p>the ARR is expressed as a percentage (to 2 decimal places), and</p></li><li><p>the NPV is expressed as a monetary value (to 2 decimal places).</p></li></ul></div><div class="blueBg"><h5><span style="font-family:arial,helvetica,sans-serif;"><span style="color:#FF0000;"><span class="snippet-fa fa fa-lightbulb-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Top tip!</span></span></h5><p><strong><span style="font-family:arial,helvetica,sans-serif;">Evaluation of investment appraisal methods (PBP, ARR & NPV)</span></strong></p><p><span style="font-family:arial,helvetica,sans-serif;">This section of the syllabus only considers three quantitative investment appraisal techniques (the PBP, ARR and NPV). In reality, managers often consider the use of qualitative techniques to judge whether an investment project is worth pursuing. For example, they may want to gauge whether the investment decision is aligned with the organization’s mission and vision statements, its corporate culture, and external factors such as the state of the economy. Ultimately, it is important to consider qualitative factors too when making investment decisions.</span></p></div><p>Click the tab below for an exam practice question on this topic. SL students are encouraged to attempt these questions, except for Question (b) (iii) which is HL only.</p></div></div><div class="panel-footer"><div></div></div></div><div class="panel panel-purple panel-expandable"><div class="panel-heading"><a class="expander pull-right" href="#"><span class="fa fa-plus"></span></a><div><p><strong>Exam Practise Question</strong></p></div></div><div class="panel-body"><div><h5><span style="color:#FF0000;"><span style="font-family:arial,helvetica,sans-serif;"><span class="snippet-fa fa fa-pencil-square-o fa-lg" style="color: rgb(103, 7, 124);"> </span> Exam Practise Question - Juke’s Retro Arcade Games (J-RAG)</span></span></h5><section class="tib-hiddenbox"><p><span style="color:#FF0000;">Encourage SL students to also attempt these questions, except for Question (b) (iii) which is HL only.</span></p></section><hr class="hidden"><p><strong><em>Juke’s Retro Arcade Games (J-RAG)</em></strong></p><p><em>Juke’s Retro Arcade Games (J-RAG) </em>is a <strong>partnership</strong> owned by brothers Jake and Luke that trades second-hand games, including popular games consoles and arcade games from the 1980s. The business has a single store in a popular location, and hires 15 part-time workers, most of whom attend the local university. Whilst this creates great flexibility, <em>J-RAG </em>struggles with staff retention, especially during the spring each year as the students who work at the business need time to prepare for their exams.</p><p>The business also has an outdated computer system so struggles with accurate stock control management. <em>J-RAG’s </em>accountant has also advised that the business needs to improve its financial and human resources record keeping, such as a secure database of employee details and payment records. Therefore, the brothers are considering whether to invest in a new computerised system to improve its operational efficiency. The cost of the investment is forecast to be $140,000 with an expected lifespan of five years. Alternatively, they could use the money to hire two full time workers which is expected to minimise disruptions caused by high <strong>labour</strong> <strong>turnover</strong>.</p><p>The forecasted net cash flows from the investment in the computerised system are given below. The partnership uses a 4% discount factor (HL only).</p><table border="0" cellpadding="0" cellspacing="0" width="331"><tbody><tr><td nowrap="nowrap" style="width:64px;height:19px;"><p align="center"><strong>Year</strong></p></td><td nowrap="nowrap" style="width:97px;height:19px;"><p align="center"><strong>Net cash flow ($)</strong></p></td><td style="width:47px;height:19px;"><p align="center"></p></td><td style="width:123px;height:19px;"><p align="center"><strong>Discount factor</strong></p></td></tr><tr><td nowrap="nowrap" style="width:64px;height:19px;"><p align="center">1</p></td><td nowrap="nowrap" style="width:97px;height:19px;"><p align="center">45,000</p></td><td style="width:47px;height:19px;"><p align="center"></p></td><td style="width:123px;height:19px;"><p align="center">0.9615</p></td></tr><tr><td nowrap="nowrap" style="width:64px;height:19px;"><p align="center">2</p></td><td nowrap="nowrap" style="width:97px;height:19px;"><p align="center">50,000</p></td><td style="width:47px;height:19px;"><p align="center"></p></td><td style="width:123px;height:19px;"><p align="center">0.9246</p></td></tr><tr><td nowrap="nowrap" style="width:64px;height:19px;"><p align="center">3</p></td><td nowrap="nowrap" style="width:97px;height:19px;"><p align="center">55,000</p></td><td style="width:47px;height:19px;"><p align="center"></p></td><td style="width:123px;height:19px;"><p align="center">0.8890</p></td></tr><tr><td nowrap="nowrap" style="width:64px;height:19px;"><p align="center">4</p></td><td nowrap="nowrap" style="width:97px;height:19px;"><p align="center">45,000</p></td><td style="width:47px;height:19px;"><p align="center"></p></td><td style="width:123px;height:19px;"><p align="center">0.8548</p></td></tr><tr><td nowrap="nowrap" style="width:64px;height:19px;"><p align="center">5</p></td><td nowrap="nowrap" style="width:97px;height:19px;"><p align="center">40,000</p></td><td style="width:47px;height:19px;"><p align="center"></p></td><td style="width:123px;height:19px;"><p align="center">0.8219</p></td></tr></tbody></table><hr class="hidden"><table border="0" cellpadding="0" cellspacing="0"><tbody><tr><td style="width:66px;"><p>(a) (i)</p></td><td style="width:463px;"><p>Define the term <em>partnership</em>.</p></td><td style="width:85px;"><p><em>[2 marks]</em></p></td></tr><tr><td style="width:66px;"><p>(a) (ii)</p></td><td style="width:463px;"><p>Define the term <em>labour turnover</em>.</p></td><td style="width:85px;"><p><em>[2 marks]</em></p></td></tr><tr><td style="width:66px;"><p>(b) (i)</p></td><td style="width:463px;"><p>Calculate the payback period for the proposed investment project.</p></td><td style="width:85px;"><p><em>[2 marks]</em></p></td></tr><tr><td style="width:66px;"><p>(b) (ii)</p></td><td style="width:463px;"><p>Calculate the average rate of return (ARR) for the proposed investment project.</p></td><td style="width:85px;"><p><br><em>[2 marks]</em></p></td></tr><tr><td style="width:66px;"><p>(b) (iii)</p></td><td style="width:463px;"><p>Calculate the net present value for the proposed investment project.</p></td><td style="width:85px;"><p><em>[2 marks]</em></p></td></tr><tr><td style="width:66px;"><p>(c)</p></td><td style="width:463px;"><p>Evaluate whether <em>J-RAG</em> should invest in the new computerised system. Use information from the case study and both quantitative and qualitative considers in your answer.</p></td><td style="width:85px;"><p><br><br><em>[10 marks]</em></p></td></tr></tbody></table><section class="tib-teacher-only" readonly="true" title="This box is not visible to students"><div class="header" readonly="true"><img class="icon" src="../../../thinkib/icons/teacher-only.svg"> Teacher only box</div><div class="content" readonly="false"><p><span style="color:#FF0000;"><strong>Answers</strong></span></p><p><strong>(a) (i) Define the term <em>partnership</em>. <em>[2 marks]</em></strong></p><p><span style="color:#FF0000;">A partnership is a form of business ownership where two to twenty people collectively own the organization. In this case, brothers Jake and Luke own J-RAG as a partnership.</span><span style="color:#FF0000;"></span></p><p><span style="color:#FF0000;">Award <em>[1 mark]</em> if there is some understanding of ‘partnership’ shown, although the answer might lack clarity.</span></p><p><span style="color:#FF0000;">Award <em>[2 marks]</em> if ‘partnership’ is clearly defined, similar to the example above. Application is not required to gain full marks.</span></p><hr class="hidden"><p><strong>(a) (ii) Define the term <em>labour turnover</em>. <em>[2 marks]</em></strong></p><p><span style="color:#FF0000;">Labour turnover measures the number of workers who leave an organization expressed as a percentage of the size of the workforce, per time period (usually each year).</span></p><p><span style="color:#FF0000;">Award <em>[1 mark]</em> if there is some understanding of ‘labour turnover’ shown, although the answer might lack clarity.</span></p><p><span style="color:#FF0000;">Award [<em>2 marks</em>] if ‘<span style="color:#FF0000;">labour turnover</span>’ is clearly defined, similar to the example above. Application is not required to gain full marks.</span></p><hr class="hidden"><p><strong>(b) (i) Calculate the payback period for the proposed investment project. <em>[2 marks]</em></strong></p><p><span style="color:#FF0000;">Payback period (PBP) calculations:</span></p><table border="0" cellpadding="0" cellspacing="0" width="291"><tbody><tr><td nowrap="nowrap" style="width:47px;height:19px;"><p align="center"><strong><span style="color:#FF0000;">Year</span></strong></p></td><td nowrap="nowrap" style="width:113px;height:19px;"><p align="center"><strong><span style="color:#FF0000;">Annual NCF</span></strong></p></td><td nowrap="nowrap" style="width:130px;height:19px;"><p align="center"><strong><span style="color:#FF0000;">Cumulative NCF</span></strong></p></td></tr><tr><td nowrap="nowrap" style="width:47px;height:19px;"><p align="center"><span style="color:#FF0000;">1</span></p></td><td nowrap="nowrap" style="width:113px;height:19px;"><p align="center"><span style="color:#FF0000;">45,000</span></p></td><td nowrap="nowrap" style="width:130px;height:19px;"></td></tr><tr><td nowrap="nowrap" style="width:47px;height:19px;"><p align="center"><span style="color:#FF0000;">2</span></p></td><td nowrap="nowrap" style="width:113px;height:19px;"><p align="center"><span style="color:#FF0000;">50,000</span></p></td><td nowrap="nowrap" style="width:130px;height:19px;"><p align="center"><span style="color:#FF0000;">95,000</span></p></td></tr><tr><td nowrap="nowrap" style="width:47px;height:19px;"><p align="center"><span style="color:#FF0000;">3</span></p></td><td nowrap="nowrap" style="width:113px;height:19px;"><p align="center"><span style="color:#FF0000;">55,000</span></p></td><td nowrap="nowrap" style="width:130px;height:19px;"><p align="center"><span style="color:#FF0000;">150,000</span></p></td></tr><tr><td nowrap="nowrap" style="width:47px;height:19px;"><p align="center"><span style="color:#FF0000;">4</span></p></td><td nowrap="nowrap" style="width:113px;height:19px;"><p align="center"><span style="color:#FF0000;">45,000</span></p></td><td nowrap="nowrap" style="width:130px;height:19px;"><p align="center"><span style="color:#FF0000;">195,000</span></p></td></tr><tr><td nowrap="nowrap" style="width:47px;height:19px;"><p align="center"><span style="color:#FF0000;">5</span></p></td><td nowrap="nowrap" style="width:113px;height:19px;"><p align="center"><span style="color:#FF0000;">40,000</span></p></td><td nowrap="nowrap" style="width:130px;height:19px;"><p align="center"><span style="color:#FF0000;">235,000</span></p></td></tr></tbody></table><ul class="branded"><li><p><span style="color:#FF0000;">At the end of Year 2, there is a shortfall of $45,000.</span></p></li><li><p><span style="color:#FF0000;"></span><span style="color:#FF0000;">By the end of Year 3, the cumulative net cash flow ($150,000) is greater than the investment cost ($140,000). Hence, the PBP must occur between Year 2 and Year 3.</span></p></li><li><p><span style="color:#FF0000;">In Year 3: $45,000 / ($55,000 / 12) = 4,583.33 = 9.82 months.</span></p></li><li><p><span style="color:#FF0000;">Hence, the payback period is <strong>2 years and 10 months</strong>.</span></p></li></ul><p><span style="color:#FF0000;">Award <em>[1 mark] </em>if the PBP is correct but there is no working out shown or the correct procedure is used but with an incorrect answer.</span><span style="color:#FF0000;"></span></p><p><span style="color:#FF0000;">Award <em>[2 marks]</em> if the correct PBP is given with the working out shown.</span></p><hr class="hidden"><p><strong>(b) (ii) Calculate the average rate of return for the proposed investment project. <em>[2 marks]</em></strong></p><ul class="branded"><li><p>A<span style="color:#FF0000;">RR = $95,000 / 5 years = $19,000 per year</span></p></li><li><p><span style="color:#FF0000;">ARR = $19,000 / $140,000</span></p></li><li><p><span style="color:#FF0000;">ARR = <strong>13.57%</strong></span></p></li></ul><p><span style="color:#FF0000;">Award <em>[1 mark]</em> if the ARR is correct but there is no working out shown or the correct procedure is used but with an incorrect answer.</span><span style="color:#FF0000;"></span></p><p><span style="color:#FF0000;">Award <em>[2 marks]</em> if the correct ARR is given with the working out shown.</span></p><hr class="hidden"><p><strong>(b) (iii) Calculate the net present value for the proposed investment project. <em>[2 marks]</em></strong></p><p><span style="color:#FF0000;">The NPV is calculated by taking away the cost of the investment project from the sum of the present values for the duration of the project. The higher the NPV, the more attractive the investment project.</span></p><table border="0" cellpadding="0" cellspacing="0" width="261"><tbody><tr><td nowrap="nowrap" style="width:57px;height:19px;"><p><span style="color:#FF0000;">Year</span></p></td><td nowrap="nowrap" style="width:55px;height:19px;"><p align="center"><span style="color:#FF0000;">Annual NCF</span></p></td><td nowrap="nowrap" style="width:67px;height:19px;"><p align="center"><span style="color:#FF0000;">Discount factor</span></p></td><td nowrap="nowrap" style="width:82px;height:19px;"><p align="center"><span style="color:#FF0000;">Discounted NCF</span></p></td></tr><tr><td nowrap="nowrap" style="width:57px;height:19px;"><p align="center"><span style="color:#FF0000;">1</span></p></td><td nowrap="nowrap" style="width:55px;height:19px;"><p align="center"><span style="color:#FF0000;">45,000</span></p></td><td style="width:67px;height:19px;"><p align="center"><span style="color:#FF0000;">0.9615</span></p></td><td nowrap="nowrap" style="width:82px;height:19px;"><p align="center"><span style="color:#FF0000;">43,267.50</span></p></td></tr><tr><td nowrap="nowrap" style="width:57px;height:19px;"><p align="center"><span style="color:#FF0000;">2</span></p></td><td nowrap="nowrap" style="width:55px;height:19px;"><p align="center"><span style="color:#FF0000;">50,000</span></p></td><td style="width:67px;height:19px;"><p align="center"><span style="color:#FF0000;">0.9246</span></p></td><td nowrap="nowrap" style="width:82px;height:19px;"><p align="center"><span style="color:#FF0000;">46,230.00</span></p></td></tr><tr><td nowrap="nowrap" style="width:57px;height:19px;"><p align="center"><span style="color:#FF0000;">3</span></p></td><td nowrap="nowrap" style="width:55px;height:19px;"><p align="center"><span style="color:#FF0000;">55,000</span></p></td><td style="width:67px;height:19px;"><p align="center"><span style="color:#FF0000;">0.889</span></p></td><td nowrap="nowrap" style="width:82px;height:19px;"><p align="center"><span style="color:#FF0000;">48,895.00</span></p></td></tr><tr><td nowrap="nowrap" style="width:57px;height:19px;"><p align="center"><span style="color:#FF0000;">4</span></p></td><td nowrap="nowrap" style="width:55px;height:19px;"><p align="center"><span style="color:#FF0000;">45,000</span></p></td><td style="width:67px;height:19px;"><p align="center"><span style="color:#FF0000;">0.8548</span></p></td><td nowrap="nowrap" style="width:82px;height:19px;"><p align="center"><span style="color:#FF0000;">38,466.00</span></p></td></tr><tr><td nowrap="nowrap" style="width:57px;height:19px;"><p align="center"><span style="color:#FF0000;">5</span></p></td><td nowrap="nowrap" style="width:55px;height:19px;"><p align="center"><span style="color:#FF0000;">40,000</span></p></td><td style="width:67px;height:19px;"><p align="center"><span style="color:#FF0000;">0.8219</span></p></td><td nowrap="nowrap" style="width:82px;height:19px;"><p align="center"><span style="color:#FF0000;">32,876.00</span></p></td></tr><tr><td nowrap="nowrap" style="width:57px;height:19px;"><p align="center"></p></td><td nowrap="nowrap" style="width:55px;height:19px;"><p align="center"></p></td><td style="width:67px;height:19px;"><p align="center"><span style="color:#FF0000;">Total</span></p></td><td nowrap="nowrap" style="width:82px;height:19px;"><p align="center"><span style="color:#FF0000;">209,734.50</span></p></td></tr></tbody></table><hr class="hidden"><ul class="branded"><li><p><span style="color:#FF0000;">Cumulative NCF = $209,734.50</span></p></li><li><p><span style="color:#FF0000;">Cost = $140,000.00</span></p></li><li><p><span style="color:#FF0000;">Hence, NPV = <strong>$69,734.50</strong></span></p></li></ul><hr class="hidden"><p><span style="color:#FF0000;">Award <em>[1 mark] </em>if the NPV is correct but there is no working out shown or the correct procedure is used but with an incorrect answer.</span></p><p><span style="color:#FF0000;">Award <em>[2 marks]</em> if the correct NPV is given with the working out shown.</span></p><hr class="hidden"><p><strong>(c) Evaluate whether <em>J-RAG</em> should invest in the new computerised system. Use information from the case study and both quantitative and qualitative considers in your answer. <em>[10 marks]</em></strong></p><p><span style="color:#FF0000;">Relevant financial factors could include:</span></p><ul class="branded"><li><span style="color:#FF0000;">A relatively long payback period of 3 years and 10 months (especially given that the project is expected to last 5 years before the computerized system needs to be upgraded).</span></li><li><span style="color:#FF0000;">The ARR of 13.57% is high (and likely to be significantly higher than interest rates in the economy, so there is an opportunity cost to just leaving any spare cash in the bank.</span></li><li><span style="color:#FF0000;">However,<em> J-RAG</em> should also consider the reliability of the forecasted financial data, especially as they are projecting figures for the next five years.</span></li><li><span style="color:#FF0000;">There also needs to be consideration of the opportunity cost of the $140,000 that could be used for investment. For example, there is the possibility of using this money for the partners to hire two full-time workers, which would help to minimize the impact of the high labour turnover at <em>J-RAG</em>.</span></li><li><em><span style="color:#FF0000;">Accept any other relevant financial / quantitative factor, written in the context of the case study.</span></em></li></ul><hr class="hidden"><p><span style="color:#FF0000;">Non-financial factors that could be considered by the partners regarding the investment in a new computerized computer system could include:</span></p><ul class="branded"><li><span style="color:#FF0000;">Consideration of whether the human resource issues are more of a priority than the need for a new computerized system.</span></li><li><span style="color:#FF0000;"></span><span style="color:#FF0000;">The state of the economy – people are less likely to spend money on arcade consoles and games if there is a recession, for example.</span></li><li><span style="color:#FF0000;">The degree of competition in the local area (<em>J-RAG</em> operates in a rather niche market).</span></li><li><span style="color:#FF0000;">Expected changes in interest rates.</span></li><li><span style="color:#FF0000;">The impact on human resources, e.g. staff training, staff morale (retention is already an issue for <em>J-RAG</em>).</span></li><li><em><span style="color:#FF0000;">Accept any other relevant non-financial / qualitative factor, written in the context of the case study.</span></em></li></ul><hr class="hidden"><p><span style="color:#FF0000;">Award <em>[1 - 2 marks]</em> if the answer is vague, generalized or lacks substance.</span></p><p><span style="color:#FF0000;">Award <em>[3 - 4 marks]</em> if the answer shows some understanding of the demands of the question. There is some relevant application of the case study and figures calculated in Question (b), although the answer lacks depth / analysis.</span></p><p><span style="color:#FF0000;">Award<em> [5 - 6 marks] </em>if the answer shows understanding of the demands of the question. There is relevant application of the case study and figures calculated in Question (b), although the answer lacks balance. Award up to<em> [6 marks]</em> if only financial <em>or </em>non-financial factors are considered.</span></p><p><span style="color:#FF0000;">Award <em>[7 - 8 marks]</em> if the answer shows good understanding of the demands of the question. There is detailed consideration of both relevant numerical and non-numerical factors in relation to<em> J-RAG’s</em> investment decision. However, evaluation is limited if attempted.</span></p><p><span style="color:#FF0000;">Award <em>[9 - 10 marks]</em> if there is a balanced discussion of relevant numerical and non-numerical factors in relation to whether <em>J-RAG</em> should invest in the new computerized system to improve its stock (inventory) control and operational efficiency. Appropriate terminology and examples from the case study have been used effectively. There is evidence of critical and evaluative thinking.</span></p><hr class="hidden"><p>Click <a href="../../../media/ib/businessmanagement/files/3.8-exam-question.pdf.html">here</a> to download a PDF version of this exam practice question for use with students.</p></div></section></div></div></div><p><span style="font-family:arial,helvetica,sans-serif;">Click the hyperlink to return to the <a href="../44515/38-investment-appraisal.html" title="New syllabus 2022 » Unit 3 - Finance and Accounts (WIP) » 3.8 Investment appraisal">Unit 3.8 - Investment appraisal</a> homepage</span></p><p><span style="font-family:arial,helvetica,sans-serif;">Click the hyperlink to return to the <a href="../43545/unit-3-finance-and-accounts-wip.html" title="New syllabus 2022 » Unit 3 - Finance and Accounts (WIP)">Unit 3 - Finance & Accounts</a> homepage</span></p><p><span style="font-family:arial,helvetica,sans-serif;"><a href="../../index.htm"><img alt="" src="../../../ib/businessmanagement/logo-blue-black-1.png" style="width: 170px; height: 54px;"></a></span></p><script>document.querySelectorAll('.tib-teacher-only').forEach(e => e.remove());</script>
</section>
</div>
</article>
</div><!-- /#main-column -->
</div>
</div><!-- /#content -->
</div>
</div>
<div id="footer" class="student-access">
<div class="wmap">
<div class="layout-wrapper">
<p>
© <script>document.write(new Date().getFullYear())</script> <em>InThinking</em>
|
<a target="_self" href="https://thinkib.net/subscribe/about-us">
About us
</a>
|
<a target="_self" href="https://thinkib.net/subscribe/legal">
Legal
</a>
|
<a target="_self" href="https://thinkib.net/subscribe/contact">
Contact
</a>
</p>
<p>
<a class="social" target="_blank" href="https://twitter.com/#!/inthinker">
<img src="../../../social/twitter-square-1.svg"> Twitter
</a>
<a class="social" target="_blank" href="https://www.facebook.com/inthinking.net">
<img src="../../../social/facebook-square-1.svg"> Facebook
</a>
<a class="social" target="_blank" href="https://www.linkedin.com/company/9s4we1">
<img src="../../../social/linkedin-square-1.svg"> LinkedIn
</a>
</p>
</div>
</div>
</div>
<input id="tzoffset" type="hidden" value="-7200"><div id="modal-session-expired" class="modal fade" tabindex="-1" role="dialog" data-backdrop="static" data-keyboard="false">
<div class="modal-dialog" role="document">
<div class="modal-content">
<div class="modal-header">
<h3 style="margin-top: 0">Your session has expired</h3>
</div>
<div class="modal-body" style="padding: 10px;">
<p>You will have to reload and log in again.</p>
</div>
<div class="modal-footer">
<a id="session-expired" class="btn btn-danger pull-right" href="#">
<i class="fa fa-refresh"></i> Reload
</a>
</div>
</div>
</div>
</div>
<!-- Loading scripts at the end of the body means faster page loading -->
<script src="../../../js/jquery-1.10.2.min-1.js"></script>
<script src="../../../js/bootstrap.min-1.js"></script>
<script type="text/javascript" src="../../../js/jq-fancybox/jquery.fancybox.pack-1.js"></script>
<script src="../../../js/sidemenu/sidemenu.min-1.js?v=202011301145"></script><script src="../../../js/std-access/std-assignments-utils.min-1.js?v=202305221900"></script><script src="../../../js/std-access/std-comments-utils.min-1.js?v=202305221900"></script><script src="../../../js/std/std-task-utils.min-1.js?v=202305221900"></script><script src="../../../js/jq-mark.js/jquery.mark.min-1.js"></script><!-- MathJax only to render Math ML -->
<!--<script src="https://cdnjs.cloudflare.com/ajax/libs/mathjax/2.7.0/MathJax.js?config=TeX-AMS-MML_HTMLorMML"></script>-->
<script src="../../../ajax/libs/mathjax/2.7.0/MathJax-1.js?config=MML_HTMLorMML"></script>
<style>
.math-tex {
font-size: 1.15em !important;
}
.math-tex span.ML__text {
/*font-family: inherit !important;*/
}
.ML__text + .ML__mathit {
margin-left: 0 !important;
}
.math-tex img, .math-tex + img, span img {
box-shadow: none;
margin: 0;
}
body {
--keycap-height: 39px;
--keycap-font-size: 16px;
--keycap-shift-font-size: 9px;
--keycap-small-font-size: 9px;
--keycap-extra-small-font-size: 9px;
--keyboard-toolbar-font-size: 16px;
--keycap-gap: 1px;
}
</style>
<script src="../../../mathlive%400.95.4/dist/mathlive.min-1.js" async="" defer=""></script>
<script src="../../../%40cortex-js/compute-engine%400.12.3/dist/compute-engine.min-1.js" async="" defer=""></script>
<script type="text/javascript" src="../../../js/cortexjs-utils.min-1.js?v=20230810"></script>
<script>
window.addEventListener('load',
() => MathLive.renderMathInDocument()
);
</script>
<script src="../../../js/header-circle.min-1.js?v=202305221900"></script><script type="text/javascript" src="../../../js/cookies.min-1.js"></script>
<script type="text/javascript">
// The cookies alert
if (! readCookie("displayCookieConsent") && ! readCookie("y") ) {
var cookieMSG = "We use cookies. By continuing to use this website you are giving consent to cookies being used.";
setTimeout(function() {
$.ajax({
cache: true,
url: "js/cookiechoices.js",
dataType: "script",
success: function () {
cookieChoices.showCookieConsentBar(cookieMSG, 'close', 'Read more', "businessmanagement/legal#cookies");
}
});
}, 2000);
}
</script><script>var sAJAX='/pages/activity/user-stats-page.php?t=fd6a5e8a06cfccf2&x=25648';var sData='0ebg+I>F/4F[IxZ[LIn1o|TM2iQCo|wOqNQcoO>2UjpCqiT2UMk8n-WuIxZsqIk)2mbc2iTsLxQi+NSQqtQs2m+)hvg[UxbMLNbYoiQChNf[5[bMLmTYqNu8/[g[qiTsqIbCowZ1qx/znV/6/Obc2iZQ2|ncIj>u2vr[5[bg+NLc/[g[2|TMojTe+iTahNk[5[/8nVrS5tbZ';var loopSecs = 30;var lsKey = 'd6b2aa146e696bfd58a04091a6aec50a';</script><script src="../../../js/user/user-stats-page.min-1.js?v=202102101800"></script><script>var sessionUpdateSecs = 600;</script><script type="text/javascript" src="../../../js/session-updater-1.js?v=20200831"></script>
<script type="text/javascript">
$(document).ready(function(){
function padLeft(str,max){return str.length<max?padLeft("0"+str,max):str}function padRight(str,max){return str.length<max?padRight(str+"0",max):str}$("body").on("click",'a[href="#"], a.fancybox-nav, a[data-toggle="tab"], a[data-toggle="dropdown"], a[data-toggle="collapse"], a[data-toggle="modal"]',(function(e){e.preventDefault()}));var topmenuOffset=0,topmenuHeight=0;function fixDiv(t,h){$(window).scrollTop()<topmenuOffset||$("#topmenu ul.level-1").is(":visible")?($("#topmenu").css({position:"",width:""}),$("#topmenu").removeClass("fixed-top"),$("body").css({"padding-top":"0"})):($("#topmenu").css({position:"fixed",top:"0",width:$("#topmenu").width()+"px"}),$("#topmenu").addClass("fixed-top"),$("body").css({"padding-top":topmenuHeight+"px"}))}function fixSearchNav(){var searchMenuTop=topmenuOffset+topmenuHeight,searchMenuH=$("#nav-menu-search").is(":visible")?$("#nav-menu-search").outerHeight():0;if($(window).scrollTop()>searchMenuTop-topmenuHeight){var borderBottomWidth=parseInt($("#topmenu").css("borderBottomWidth"))+1;$("#nav-menu-search").css({position:"fixed",top:topmenuHeight+borderBottomWidth+"px",left:"0",right:"0"}),$("#nav-menu-search").addClass("fixed-top"),$("body").css("padding-top",topmenuHeight+searchMenuH+"px")}else $("#nav-menu-search").css({position:""}),$("#nav-menu-search").removeClass("fixed-top"),$("body").css("padding-top","0")}$("#topmenu").length&&(topmenuOffset=$("#topmenu").offset().top,topmenuHeight=$("#topmenu").outerHeight(),fixDiv(),$(window).scroll((function(){fixDiv(),fixSearchNav()}))),$("a.toggle-menu-search").on("click",(function(e){e.preventDefault(),$("#nav-menu-search").slideToggle("fast",(function(){$(this).find('input[name="s"]').focus()}))}));var menuH=$("#topmenu").height(),itemH=$("#topmenu > nav > ul > li").height();function fancyScrollTo(id){$("html, body").animate({scrollTop:$("#"+id).offset().top-300},300)}function printSectionBlog(){var w=$(window).width()/2,h,windowSettings="height="+($(window).height()-100)+", width="+w+", left=0, top=0, resizable=no, ";windowSettings+="scrollbars=yes, toolbar=no, menubar=no, location=no, ",windowSettings+="directories=no, status=yes";var myWindow=window.open("","Page printer",windowSettings),containerHtml=["<html>","<head>","<title>Page printer</title>",'<link rel="stylesheet" type="text/css" href="'+window.location.origin+'/css/style.min.css?v=20230303">','<link rel="stylesheet" type="text/css" href="'+window.location.origin+"/css/style"+SITE_TAG+'.min.css?v=202104061357">','<link rel="stylesheet" type="text/css" href="'+window.location.origin+'/css/snippets.min.css?v=202210181500">','<link rel="stylesheet" type="text/css" href="'+window.location.origin+'/css/article.min.css?v=202212191730">',"</head>","<body>",$("section#main-content").html().replace(/<span\sclass="MJX_Assistive_MathML".*?<\/span>/g,""),"</body>","</html>"].join("");containerHtml=containerHtml.replace(/src="files\//gi,'src="'+window.location.origin+"/files/"),myWindow.document.write(containerHtml),myWindow.document.close(),myWindow.focus(),setTimeout((function(){$.when(myWindow.print()).then(myWindow.close())}),1e3)}function PopupPrint(target){window.print()}$("#topmenu > nav > ul > li").each((function(){if(menuH>itemH&&$(this).position().top<1){var i=itemH+1;$(this).find("ul:first").css("margin-top","-"+i+"px")}})),$("#topmenu > nav > ul > li").on("mouseenter mouseleave",(function(e){var submenu=$("ul:first",this),submenuW=submenu.width();$(this).offset().left+submenuW>$(window).width()&&(submenu.css("right","0"),submenu.find("ul").each((function(){if(!$(this).hasClass("fixed")){var l=$(this).width()+submenuW;$(this).css("margin-left","-"+l+"px"),$(this).addClass("fixed")}})))})),$("a.showhider").click((function(e){e.preventDefault();var box="#"+$(this).attr("rel"),show='<i class="fa fa-eye"></i>',hide='<i class="fa fa-eye-slash"></i>';$(box).slideToggle("fast"),$(this).html($(this).html()==show?hide:show),$(this).attr("title","Show"==$(this).attr("title")?"Hide":"Show")})),$("a.scroll-to").click((function(e){e.preventDefault();var n=$("#"+$(this).data("target")).offset().top-70;$("html, body").animate({scrollTop:n},300)})),$("a.print-section-blog").click((function(e){e.preventDefault(),printSectionBlog()})),$(".print-button").click((function(e){var target;e.preventDefault(),PopupPrint("#"+$(this).data("target-id"))})),$(".alert.alert-success").delay(6e3).hide("fast",fixDiv());var fancyParent=1==$("body").find($("#main-article")).length?"#main-article":"body",fancyOptions={loop:!1,openEffect:"elastic",closeEffect:"elastic",nextEffect:"fade",prevEffect:"fade",parent:fancyParent,helpers:{title:{type:"inside"}}};if($("ul.gallery").each((function(){var rel=$(this).find("li:first-child > a:first-child").attr("rel");$('ul.gallery a.fancy[rel="'+rel+'"]').fancybox(fancyOptions)})),$(".carousel.slide").each((function(){var rel="gallery-"+$(this).data("id");$('.carousel.slide a.fancy[rel="'+rel+'"]').fancybox(fancyOptions)})),$("img.pop").parent("a").each((function(){$(this).attr("title",$(this).children("img").attr("alt"))})),$("img.pop").parent("a").fancybox({loop:!1,helpers:{title:{type:"inside"}}}),!are_cookies_enabled()){var msg='<div class="alert alert-error"><i class="fa fa-warning"></i> Your browser does not accept cookies from this site. Please enable cookies to log in.</div><div class="alert alert-info"><i class="fa fa-question-circle"></i> Enabling cookies in <a target="_blank" style="margin: 0; padding: 0;" href="https://support.mozilla.org/en-US/kb/enable-and-disable-cookies-website-preferences">Firefox</a>, <a target="_blank" style="margin: 0; padding: 0;" href="https://support.google.com/accounts/answer/61416?hl=en">Chrome</a>, <a target="_blank" style="margin: 0; padding: 0;" href="http://windows.microsoft.com/en-us/windows-vista/block-or-allow-cookies">Explorer</a></div>';$("#modal-login .modal-header").append(msg)}if($(".panel-expandable > .panel-heading").click((function(e){e.preventDefault();var panel=$(this).closest(".panel-expandable"),expandables=panel.hasClass("panel-has-footer")?".panel-body, .panel-footer":".panel-body";panel.find(".panel-body").is(":visible")?(panel.find(expandables).slideUp("fast"),panel.find(".expander > .fa-minus").removeClass("fa-minus").addClass("fa-plus")):(panel.find(expandables).slideDown("fast"),panel.find(".expander > .fa-plus").removeClass("fa-plus").addClass("fa-minus"))})),$("#modal-find-out-more").css({width:.8*$("#container").width()+"px","margin-left":-.4*$("#container").width()+"px"}),$(".modal-xxl").length){var modalTopPos=Math.round(.07*$(window).height());$(window).width()>1200&&$(".modal-xxl").css({"max-width":$(window).width()>960?"960px":$(window).width()+"px",width:$(window).width()>960?"960px":$(window).width()+"px","margin-left":$(window).width()>960?"-480px":Math.round($(window).width()/2)}),$(".modal-xxl").css("top",modalTopPos+"px"),$(".modal-xxl").on("shown",(function(){var mHeaderH=$(this).find(".modal-header").outerHeight(),mBody=$(this).find(".modal-body"),mBodyH=mBody.outerHeight(),mFooterH=$(this).find(".modal-footer").outerHeight(),bottomOfTheModal=modalTopPos+mHeaderH+mBodyH+mFooterH;if(bottomOfTheModal<$(window).height())mBodyH+=$(window).height()-bottomOfTheModal-60,mBody.css("max-height",mBodyH+"px");else{$(window).scrollTop(0),modalTopPos=10,$(".modal-xxl").css("top",modalTopPos+"px"),bottomOfTheModal=modalTopPos+mHeaderH+mBodyH+mFooterH,availableScroll=bottomOfTheModal-$(window).height()+modalTopPos;var lastPos=-1;$(window).on("scroll",(function(){var s=$(window).scrollTop()>availableScroll?availableScroll:$(window).scrollTop();newPos=modalTopPos-s,newPos!=lastPos&&($(".modal-xxl").css("top",newPos+"px"),lastPos=newPos)}))}}))}function popupHelp(url,title,w,h){var dualScreenLeft=void 0!==window.screenLeft?window.screenLeft:screen.left,dualScreenTop=void 0!==window.screenTop?window.screenTop:screen.top,width,height,left=(window.innerWidth?window.innerWidth:document.documentElement.clientWidth?document.documentElement.clientWidth:screen.width)/2-w/2+dualScreenLeft,top=(window.innerHeight?window.innerHeight:document.documentElement.clientHeight?document.documentElement.clientHeight:screen.height)/2-h/2+dualScreenTop,newWindow=window.open(url,title,"menubar=no,location=no,resizable=0, width="+w+", height="+h+", top="+top+", left="+left);return window.focus&&(newWindow?newWindow.focus():$('<div class="alert alert-warning" style="margin-bottom: 0px;"><p class="help-block">Pop Up blocked. Please allow Pop Ups in your browser settings.</p></div>').insertBefore("body")),newWindow}if($(".open-student-access-help").click((function(e){e.preventDefault();var h=$(window).height()-20,w=$(window).width()<1280?$(window).width():1280;popupHelp(helpURL,"Student Access Help",w,h)})),$(".pop-up-help").click((function(e){e.preventDefault();var url=$(this).attr("href"),title=$(this).data("title"),h=$(window).height()-20,w;popupHelp(url,title,$(window).width()<1280?$(window).width():1280,h)})),$("section.tib-hiddenbox").length){var count=0;$($("section.tib-hiddenbox").get().reverse()).each((function(){var box=$(this),revealButton;$("<a />").attr("class","btn showhider").attr("rel","hiddenBoxContent"+count).attr("style","margin-bottom: 0;").html('<i class="fa fa-eye"></i>').insertBefore(box);var newContainer=$("<div />").attr("class","hidden-content").attr("id","hiddenBoxContent"+count).html(box.html());newContainer.hide(),newContainer.insertBefore(box),box.remove(),count++})),$("a.showhider").on("click",(function(e){var container=$("#"+$(this).attr("rel"));container.is(":hidden")?(container.fadeIn("fast"),$(this).html('<i class="fa fa-eye-slash"></i>')):(container.fadeOut("fast"),$(this).html('<i class="fa fa-eye"></i>'))}))}
$('img.ico[src="https://assets.inthinking.net/thinkib/icons/comments.png"]').each(function(){var comment=$(this).attr("title");$(this).removeAttr("title");$(this).wrap('<a class="tib-popover" href="#" data-content="'+comment+'" data-togle="popover" data-placement="top" />')});$('img.ico[src="https://assets.inthinking.net/thinkib/icons/comments.png"]').each(function(){var comment=$(this).attr("title");$(this).removeAttr("title");$(this).wrap('<a class="tib-popover" href="#" data-content="'+comment+'" data-togle="popover" data-placement="top" />')});$(".tib-popover").popover({html:true,trigger:"hover",delay:{show:300,hide:300},placement:function(context,source){var position=$(source).position();if(position.top>200){return"top"}if(position.left<515){return"right"}if(position.top<200){return"bottom"}if(position.left>515){return"left"}return"top"}}).click(function(e){e.preventDefault()});var carouselTime=6500;$("div.carousel.slide").carousel({interval:carouselTime});$(".tib-indicators > img").click(function(){var index=$(this).index();var container=$(this).closest(".carousel.slide");container.carousel(index)});setShowResultsListeners($("#container"));addMarksThreads($("#modal-std-write"));
$('a.btn.showhider').click(function(e) {
var showHiderId = $( this ).attr('rel');
if( $('#'+showHiderId).find('iframe').length > 0 ) {
$('#'+showHiderId+' iframe').each(function() {
if ( $(this).attr('src').indexOf('.pdf') > 0 ) {
this.contentWindow.location.reload(true);
}
});
}
});
});
</script>
</body>
</html>