Post Utme Caleb University 2023 Economics Question 8

Practice objective / multiple choice question 8 from the 2023 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2023 Economics Objective / Multiple Choice
Question 8 POST_UTME_CALEB_UNIVERSITY • 2023 • ECONOMICS • objective

A firm is considering investing in a new project. The project's net present value (NPV) is positive. What does this indicate about the project's expected return?

Answer Options

A. The project's expected return is lower than the \cost of capital.
Correct Answer B. The project's expected return is higher than the \cost of capital.
C. The project's expected return is equal to the \cost of capital.
D. The project's expected return is uncertain.
Correct Answer
B
Correct Option:
The project's expected return is higher than the \cost of capital.

About This Question

This is Post Utme Caleb University 2023 Economics Question 8. It is one of the objective questions from the 2023 Post Utme Caleb University Economics examination.

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