Post Utme Coal City University 2021 Commerce Question 5

Practice objective / multiple choice question 5 from the 2021 Post Utme Coal City University Commerce examination.

Post Utme Coal City University 2021 Commerce Objective / Multiple Choice
Question 5 POST_UTME_COAL_CITY_UNIVERSITY • 2021 • COMMERCE • objective

A company is considering two different production processes. Process A requires an initial investment of 100,000 and generates 120,000 in revenue per year. Process B requires an initial investment of 150,000 and generates 180,000 in revenue per year. Which process has a higher net present value?

Answer Options

A. Process A
Correct Answer B. Process B
C. Both processes have the same net present value
D. Neither process has a higher net present value
Correct Answer
B
Correct Option:
Process B

About This Question

This is Post Utme Coal City University 2021 Commerce Question 5. It is one of the objective questions from the 2021 Post Utme Coal City University Commerce examination.

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