ROCE/Investment appraisal

The ROCE method (or accounting rate of return – ARR) is one of the methods of investment appraisal!!
There are three methods you need to be aware of – ARR, payback period, and discounted cash flow (discounted cash flow being by far the most important for the exam).

All of them are explained in detail in my free lectures (and in the Paper F2 lectures also, because they are revision of F2). You cannot expect me to type out all of my lectures here 🙂

My free lectures are a complete free course for Paper F9 and cover everything needed to be able to pass the exam well. (If, for any reason, you cannot watch the lectures or you are not prepared to watch the lectures, then you are going to have to buy a Study Text from one of the ACCA approved publishers and study from there. If you do watch my free lectures then you do not need a Study Text – all you need to buy is a Revision Kit from one of the approved publishers (because they contain lots of exam standard questions to practice on, and practice is vital if you are to pass the exam.))

You are welcome 🙂

Of course it is!!! If the NPV is positive then we accept the project, whereas if it is negative we reject the project. That is the whole point of calculating the NPV.

I really do suggest that you watch my free lectures on this (and if necessary the relevant Paper MA (was F2) lectures, because this is revision from Paper MA).
The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.

Yes, of course it is possible (and will often be the case).