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Investment appraisal common mistakes

Study Investment appraisal with curriculum-aligned Common Mistakes resources, practice links, and exam-focused support.

At a glance

common mistakes

Resource type

Topic

Investment appraisal

AqaA LevelBusinessAnalysing the strategic position of a business

Common mistakes

  • Assessing investment options common mistake 1

    Writing a final answer without showing the method that justifies it. This can weaken answers for: Calculate and interpret payback, average rate of return and net present value..

    Fix itShow the method first, then give the final answer in the required form. Apply this directly to Assessing investment options.

  • Assessing investment options common mistake 2

    Using the topic word correctly but not linking it to the numbers, diagram, graph, or expression in the question. This can weaken answers for: Calculate and interpret payback, average rate of return and net present value..

    Fix itName the relevant value or feature from the question and explain how it is used. Apply this directly to Assessing investment options.

  • Assessing investment options common mistake 3

    Mixing up two nearby concepts because they appear in the same subtopic. This can weaken answers for: Calculate and interpret payback, average rate of return and net present value..

    Fix itState the exact concept being used before doing the calculation or explanation. Apply this directly to Assessing investment options.

  • Assessing investment options common mistake 1

    Writing a final answer without showing the method that justifies it. This can weaken answers for: Evaluate investment decisions using investment criteria, non-financial factors, risk and uncertainty..

    Fix itShow the method first, then give the final answer in the required form. Apply this directly to Assessing investment options.

  • Assessing investment options common mistake 2

    Using the topic word correctly but not linking it to the numbers, diagram, graph, or expression in the question. This can weaken answers for: Evaluate investment decisions using investment criteria, non-financial factors, risk and uncertainty..

    Fix itName the relevant value or feature from the question and explain how it is used. Apply this directly to Assessing investment options.

  • Assessing investment options common mistake 3

    Mixing up two nearby concepts because they appear in the same subtopic. This can weaken answers for: Evaluate investment decisions using investment criteria, non-financial factors, risk and uncertainty..

    Fix itState the exact concept being used before doing the calculation or explanation. Apply this directly to Assessing investment options.

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