Post Utme Achievers University 2024 Commerce Question 32

Practice objective / multiple choice question 32 from the 2024 Post Utme Achievers University Commerce examination.

Post Utme Achievers University 2024 Commerce Objective / Multiple Choice
Question 32 POST_UTME_ACHIEVERS_UNIVERSITY • 2024 • COMMERCE • objective

A company is considering two different investment projects. Project A has a cost of ₦3,000,000 and is expected to generate a cash inflow of ₦800,000 per year for 3 years. Project B has a cost of ₦1,500,000 and is expected to generate a cash inflow of ₦1,000,000 per year for 3 years. Which project has a higher net present value (NPV)?

Answer Options

A. Project A
Correct Answer B. Project B
C. Both projects have the same NPV
D. Neither project has a positive NPV
Correct Answer
B
Correct Option:
Project B

About This Question

This is Post Utme Achievers University 2024 Commerce Question 32. It is one of the objective questions from the 2024 Post Utme Achievers University Commerce examination.

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