Post Utme Babcock University 2022 Commerce Question 31

Practice objective / multiple choice question 31 from the 2022 Post Utme Babcock University Commerce examination.

Post Utme Babcock University 2022 Commerce Objective / Multiple Choice
Question 31 POST_UTME_BABCOCK_UNIVERSITY • 2022 • COMMERCE • objective

A company is considering the introduction of a new product line. The product line is expected to generate an additional ₦500 million in revenue, but it will also require an initial investment of ₦200 million. If the company's cost of capital is 10%, what is the expected net present value (NPV) of the project?

Answer Options

A. ₦250 million
Correct Answer B. ₦300 million
C. ₦350 million
D. ₦400 million
Correct Answer
B
Correct Option:
₦300 million

About This Question

This is Post Utme Babcock University 2022 Commerce Question 31. It is one of the objective questions from the 2022 Post Utme Babcock University Commerce examination.

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