Post Utme Aaua 2023 Commerce Question 32

Practice objective / multiple choice question 32 from the 2023 Post Utme Aaua Commerce examination.

Post Utme Aaua 2023 Commerce Objective / Multiple Choice
Question 32 POST_UTME_AAUA • 2023 • COMMERCE • objective

A company is considering the purchase of a new machine that costs ₦1,500,000. The machine is expected to last for 5 years and reduce maintenance costs by ₦200,000 per year. What is the net present value (NPV) of the machine, assuming a discount rate of 10%?

Answer Options

Correct Answer A. ₦1,200,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Correct Answer
A
Correct Option:
₦1,200,000

About This Question

This is Post Utme Aaua 2023 Commerce Question 32. It is one of the objective questions from the 2023 Post Utme Aaua Commerce examination.

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