Post Utme Bowen University 2025 Commerce Question 17

Practice objective / multiple choice question 17 from the 2025 Post Utme Bowen University Commerce examination.

Post Utme Bowen University 2025 Commerce Objective / Multiple Choice
Question 17 POST_UTME_BOWEN_UNIVERSITY • 2025 • COMMERCE • objective

A company is considering the purchase of a new machine that will cost ₦500,000. The machine is expected to last for 5 years and will save the company ₦200,000 per year in labor costs. What is the net present value of the machine, assuming a discount rate of 10%?

Answer Options

Correct Answer A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Correct Answer
A
Correct Option:
₦1,000,000

About This Question

This is Post Utme Bowen University 2025 Commerce Question 17. It is one of the objective questions from the 2025 Post Utme Bowen University Commerce examination.

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