Post Utme Caleb University 2023 Commerce Question 36

Practice objective / multiple choice question 36 from the 2023 Post Utme Caleb University Commerce examination.

Post Utme Caleb University 2023 Commerce Objective / Multiple Choice
Question 36 POST_UTME_CALEB_UNIVERSITY • 2023 • COMMERCE • objective

A company is considering the introduction of a new product line. The product requires a significant investment in production facilities and marketing. However, the company's financial analysts have estimated that the product will generate a return on investment (ROI) of 15% per annum. If the company's cost of capital is 10% per annum, what is the expected net present value (NPV) of the investment?

Answer Options

A. ₦100,000
B. ₦150,000
Correct Answer C. ₦200,000
D. ₦250,000
Correct Answer
C
Correct Option:
₦200,000

About This Question

This is Post Utme Caleb University 2023 Commerce Question 36. It is one of the objective questions from the 2023 Post Utme Caleb University Commerce examination.

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