Post Utme Babcock University 2020 Commerce Question 5

Practice objective / multiple choice question 5 from the 2020 Post Utme Babcock University Commerce examination.

Post Utme Babcock University 2020 Commerce Objective / Multiple Choice
Question 5 POST_UTME_BABCOCK_UNIVERSITY • 2020 • COMMERCE • objective

A company is considering investing in a new project. The project's initial investment is ₦10 million, while the expected annual cash inflows are ₦5 million. If the company's cost of capital is 10%, what is the project's net present value (NPV)?

Answer Options

A. ₦500,000
Correct Answer B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Correct Answer
B
Correct Option:
₦750,000

About This Question

This is Post Utme Babcock University 2020 Commerce Question 5. It is one of the objective questions from the 2020 Post Utme Babcock University Commerce examination.

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