Post Utme Christopher University 2024 Commerce Question 23

Practice objective / multiple choice question 23 from the 2024 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2024 Commerce Objective / Multiple Choice
Question 23 POST_UTME_CHRISTOPHER_UNIVERSITY • 2024 • COMMERCE • objective

A firm is considering investing in a new project. The project has a net present value (NPV) of ₦100,000 and a payback period of 5 years. What is the correct interpretation of the NPV?

Answer Options

Correct Answer A. The project is expected to generate a positive NPV.
B. The project is expected to generate a negative NPV.
C. The project is expected to break even.
D. The project is expected to generate a zero NPV.
Correct Answer
A
Correct Option:
The project is expected to generate a positive NPV.

About This Question

This is Post Utme Christopher University 2024 Commerce Question 23. It is one of the objective questions from the 2024 Post Utme Christopher University Commerce examination.

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