Post Utme Caleb University 2023 Commerce Question 39

Practice objective / multiple choice question 39 from the 2023 Post Utme Caleb University Commerce examination.

Post Utme Caleb University 2023 Commerce Objective / Multiple Choice
Question 39 POST_UTME_CALEB_UNIVERSITY • 2023 • COMMERCE • objective

A company is considering the introduction of a new production process. The process requires a significant investment in new equipment and training for the workforce. However, the company's financial analysts have estimated that the process will generate a return on investment (ROI) of 20% per annum. If the company's cost of capital is 15% per annum, what is the expected net present value (NPV) of the investment?

Answer Options

A. ₦200,000
B. ₦250,000
Correct Answer C. ₦300,000
D. ₦350,000
Correct Answer
C
Correct Option:
₦300,000

About This Question

This is Post Utme Caleb University 2023 Commerce Question 39. It is one of the objective questions from the 2023 Post Utme Caleb University Commerce examination.

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