Post Utme Bowen University 2022 Commerce Question 19

Practice objective / multiple choice question 19 from the 2022 Post Utme Bowen University Commerce examination.

Post Utme Bowen University 2022 Commerce Objective / Multiple Choice
Question 19 POST_UTME_BOWEN_UNIVERSITY • 2022 • COMMERCE • objective

A company is considering investing in a new project. The project has a net present value (NPV) of ₦100,000 and a payback period of 5 years. Which of the following is a correct interpretation of the NPV?

Answer Options

Correct Answer A. The project is expected to generate a return of ₦100,000 per year.
B. The project is expected to generate a return of ₦20,000 per year.
C. The project is expected to generate a return of ₦10,000 per year.
D. The project is expected to generate a return of ₦5,000 per year.
Correct Answer
A
Correct Option:
The project is expected to generate a return of ₦100,000 per year.

About This Question

This is Post Utme Bowen University 2022 Commerce Question 19. It is one of the objective questions from the 2022 Post Utme Bowen University Commerce examination.

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