Post Utme Abu 2018 Economics Question 5

Practice objective / multiple choice question 5 from the 2018 Post Utme Abu Economics examination.

Post Utme Abu 2018 Economics Objective / Multiple Choice

Question 5 POST_UTME_ABU • 2018 • ECONOMICS • objective

A firm is considering investing in a new project that has a net present value (NPV) of ₦100,000. The firm's \cost of capital is 10%. Which of the following is a correct statement regarding the NPV rule?

A. The NPV rule states that a project should be accepted if its NPV is greater than its \cost of capital.

B. The NPV rule states that a project should be accepted if its NPV is less than its \cost of capital.

Correct Answer C. The NPV rule states that a project should be accepted if its NPV is greater than zero.

D. The NPV rule states that a project should be accepted if its NPV is less than zero.

Correct Answer

Correct Option:

The NPV rule states that a project should be accepted if its NPV is greater than zero.

This is Post Utme Abu 2018 Economics Question 5. It is one of the objective questions from the 2018 Post Utme Abu Economics examination.

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