Post Utme Bowen University 2025 Commerce Question 26

Practice objective / multiple choice question 26 from the 2025 Post Utme Bowen University Commerce examination.

Post Utme Bowen University 2025 Commerce Objective / Multiple Choice
Question 26 POST_UTME_BOWEN_UNIVERSITY • 2025 • COMMERCE • objective

A company is considering two different production processes for its new product. Process A requires an initial investment of ₦5 million and generates a profit of ₦2.5 million per year. Process B requires an initial investment of ₦10 million and generates a profit of ₦5 million per year. If the company expects to operate for 5 years, which process should it choose?

Answer Options

A. Process A
Correct Answer B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Correct Answer
B
Correct Option:
Process B

About This Question

This is Post Utme Bowen University 2025 Commerce Question 26. It is one of the objective questions from the 2025 Post Utme Bowen University Commerce examination.

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