The requirement here was to calculate the internal rate of return (IRR) of an investment and many answers gained full marks. Some answers lost marks due to calculation errors, while as in previous examinations, there were a small number of answers that calculated ARR (accounting rate of return or return on capital employed) instead of IRR. Some candidates did not understand the IRR decision rule, claiming wrongly that the investment was not acceptable because the IRR was greater than the cost of capital of the investing company.