Post Utme Caleb University 2025 Commerce Question 9

Practice objective / multiple choice question 9 from the 2025 Post Utme Caleb University Commerce examination.

Post Utme Caleb University 2025 Commerce Objective / Multiple Choice
Question 9 POST_UTME_CALEB_UNIVERSITY • 2025 • COMMERCE • objective

A firm is considering investing in a new warehouse. The warehouse's initial investment is ₦1,500,000, and the expected annual maintenance cost is ₦200,000. If the firm's cost of capital is 10% per annum, what is the net present value (NPV) of the investment?

Answer Options

A. ₦1,200,000
Correct Answer B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Correct Answer
B
Correct Option:
₦1,300,000

About This Question

This is Post Utme Caleb University 2025 Commerce Question 9. It is one of the objective questions from the 2025 Post Utme Caleb University Commerce examination.

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