Post Utme Abu 2022 Commerce Question 33

Practice objective / multiple choice question 33 from the 2022 Post Utme Abu Commerce examination.

Post Utme Abu 2022 Commerce Objective / Multiple Choice
Question 33 POST_UTME_ABU • 2022 • COMMERCE • objective

A firm is considering two investment projects, A and B. Project A has a net present value (NPV) of ₦100,000 and a payback period of 5 years. Project B has an NPV of ₦150,000 and a payback period of 3 years. Which project should the firm choose?

Answer Options

A. Project A, due to its shorter payback period.
Correct Answer B. Project B, due to its higher NPV.
C. Project A, due to its higher NPV.
D. Project B, due to its shorter payback period.
Correct Answer
B
Correct Option:
Project B, due to its higher NPV.

About This Question

This is Post Utme Abu 2022 Commerce Question 33. It is one of the objective questions from the 2022 Post Utme Abu Commerce examination.

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