Post Utme Abu 2018 Commerce Question 38

Practice objective / multiple choice question 38 from the 2018 Post Utme Abu Commerce examination.

Post Utme Abu 2018 Commerce Objective / Multiple Choice
Question 38 POST_UTME_ABU • 2018 • COMMERCE • objective

A firm is considering investing in a new project that has a 20% chance of generating a return of ₦1,000,000, and a 80% chance of generating a return of ₦0. If the firm's cost of capital is 10%, what is the expected return on investment (ROI) for this project?

Answer Options

Correct Answer A. 10%
B. 20%
C. 30%
D. 40%
Correct Answer
A
Correct Option:
10%

About This Question

This is Post Utme Abu 2018 Commerce Question 38. It is one of the objective questions from the 2018 Post Utme Abu Commerce examination.

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