Post Utme Afe Babalola University 2021 Commerce Question 14

Practice objective / multiple choice question 14 from the 2021 Post Utme Afe Babalola University Commerce examination.

Post Utme Afe Babalola University 2021 Commerce Objective / Multiple Choice
Question 14 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2021 • COMMERCE • objective

A company is considering investing in a new production facility. The facility will cost ₦500 million to build and will generate an annual profit of ₦200 million. If the company's cost of capital is 10%, what is the net present value (NPV) of the investment?

Answer Options

Correct Answer A. ₦300 million
B. ₦400 million
C. ₦500 million
D. ₦600 million
Correct Answer
A
Correct Option:
₦300 million

About This Question

This is Post Utme Afe Babalola University 2021 Commerce Question 14. It is one of the objective questions from the 2021 Post Utme Afe Babalola University Commerce examination.

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