INTERACTIVE VIDEO

Get ready to explore the world of business with this interactive video. Once launched, you'll dive into interactive activities, master case study analysis, and challenge your knowledge with a multiple-choice quiz
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OVERVIEW

Have you ever wondered how entrepreneurs make financial decisions? One important calculation they use is the Average Rate of Return (ARR). In this interactive video, we will explore the concept of ARR and how it helps businesses measure the impact of their investments.

Using the example of Daisy Foster, the managing director of Fosters Toys LTD, we will learn how to calculate ARR to help her decide between expanding the current factory premises or relocating to a new location. By breaking down the formula for calculating ARR into four easy steps, we'll see how this calculation can be used to compare the expected profitability of different investment options.

By the end of the video, you'll understand how ARR can help businesses make informed financial decisions. So get ready to learn how to calculate ARR in just a few simple steps!

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  • DETAILED EXPLAINER VIDEO
  • 10 QUESTION MULTIPLE-CHOICE QUIZ
  • 6 INTERACTIVE ACTIVITIES
  • INTERACTIVE CASE STUDY
  • SUPPORTING STUDENT WORKSHEETS

CASE STUDY ANALYSIS
WARREN'S WILDERNESS

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  • The interactive case study explores Warren's Wilderness, a factory that produces organic beauty products using natural lavender extracts. Owner Vikki Warren is considering expanding her production capacity with a new machine costing £20,000. She expects to increase profits by £6,000 per year for 5 years, and has calculated an average rate of return of 30% for this investment. Vikki will use this information to help her decide whether to go ahead with the expansion.

Teacher Resources

Below you can find a range of teaching resources, from printable PDFs to Google Forms, along with an uninterrupted video to play to the entire class.

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