Kramizo
Log inSign up free
HomeCXC CAPE AccountingInvestment appraisal techniques
CXC CAPE · · Accounting

Investment appraisal techniques
Practice Questions

40 CXC CAPE Accounting questions on Investment appraisal techniques, each with instant feedback and a full examiner-style mark scheme.

⚡ Start Quiz on Investment appraisal techniques📖 Read Revision Notes
✨ Revision guide includes key terms, worked examples and exam technique for Investment appraisal techniques.

Try 2 sample questions on Investment appraisal techniques

Question 1 · 1 mark · Difficulty 1/3

Which appraisal method uses profit rather than cash flow?

  1. Net present value
  2. Accounting rate of return
  3. Internal rate of return
  4. Payback period
Show answer & explanation
✓ Answer: BAccounting rate of return
Award 1 mark. It is the odd one out, which is why depreciation must be deducted from cash inflows before it can be calculated.
Question 2 · 1 mark · Difficulty 1/3

What does the payback period measure?

  1. The time taken for cumulative net cash inflows to recover the initial investment
  2. The rate of return the project earns
  3. The total profit a project will earn over its life
  4. The present value of the project's cash flows
Show answer & explanation
✓ Answer: AThe time taken for cumulative net cash inflows to recover the initial investment
Award 1 mark. It addresses liquidity risk directly, which is why cash-constrained businesses value it despite its weaknesses.
⚡ Start a Quiz on Investment appraisal techniques
20 questions · 25 min · free

CXC CAPE Accounting: Investment appraisal techniques FAQ

Is Kramizo free for CXC CAPE students preparing for Accounting?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Investment appraisal techniques practice with other Accounting topics or even switch to a totally different CXC CAPE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Investment appraisal techniques questions aligned to the official CXC CAPE Accounting syllabus?
Every question is written against the published CXC CAPE Accounting specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CXC CAPE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CXC CAPE.
How is Investment appraisal techniques typically tested on CXC CAPE Accounting papers?
Investment appraisal techniques appears across multiple question types on real CXC CAPE Accounting papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

Lock in Investment appraisal techniques before exam day.

Start practising in 30 seconds — no card required.

⚡ Start Quiz Free →