Page 18 - CIMA MCS Workbook November 2018 - Day 1 Tasks

CIMA NOVEMBER 2018 – MANAGEMENT CASE STUDY

3. TYPES OF INVESTMENT APPRAISAL

Grapple’s production director, Matthew Jones, appears to be evaluating the new
production line automation on the basis of payback.

EXERCISE 3:

Discuss the pros and cons of payback and why it might be useful for Grapple. Discuss the pros and
cons of other investment appraisal techniques that Grapple could use.

14 KAPLAN PUBLISHING