# ARR Q2

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#1
https://s3-eu-west-1.amazonaws.com/t...20160905152636. When answering Q2, I have been using the formula: Avergae Annual Return / Inital cost of Project x 100. However I got an answer of 35% whereas the correct is 10.58%. Can someone else explain why this is the case.
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#2
(Original post by vv101)
https://s3-eu-west-1.amazonaws.com/t...20160905152636. When answering Q2, I have been using the formula: Avergae Annual Return / Inital cost of Project x 100. However I got an answer of 35% whereas the correct is 10.58%. Can someone else explain why this is the case.
Using the AQA formulae sheet this is the answer I've been getting, I have been using this formula for other questions which I am getting right. So why am I getting it wrong here? smh
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2 months ago
#3
Is it the profit (return rather than revenue) they're asking for? Try the formula with that instead?
Last edited by mqb2766; 2 months ago
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#4
(Original post by mqb2766)
Is it the profit (return rather than revenue) they're asking for? Try the formula with that instead?
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2 months ago
#5

But the graph shows you get ~170k and spend 130k.
I'm guessing you should use the 40k difference rather than the 170k in the formula.
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