Post Utme Achievers University 2020 Economics Question 17

Practice objective / multiple choice question 17 from the 2020 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2020 Economics Objective / Multiple Choice
Question 17 POST_UTME_ACHIEVERS_UNIVERSITY • 2020 • ECONOMICS • objective

A firm is considering investing in a new project that requires an initial investment of ₦10 million. The project is expected to generate a revenue of ₦15 million in the first year, ₦20 million in the second year, and ₦25 million in the third year. U\sing the concept of net present value (NPV), calculate the NPV of the project and determine whether it is a viable investment opportunity.

Answer Options

Correct Answer A. The NPV of the project is ₦5 million, making it a viable investment opportunity.
B. The NPV of the project is ₦10 million, making it a viable investment opportunity.
C. The NPV of the project is ₦15 million, making it a viable investment opportunity.
D. The NPV of the project is ₦20 million, making it a viable investment opportunity.
Correct Answer
A
Correct Option:
The NPV of the project is ₦5 million, making it a viable investment opportunity.

About This Question

This is Post Utme Achievers University 2020 Economics Question 17. It is one of the objective questions from the 2020 Post Utme Achievers University Economics examination.

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