Post Utme Covenant University 2019 Commerce Question 8

Practice objective / multiple choice question 8 from the 2019 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2019 Commerce Objective / Multiple Choice
Question 8 POST_UTME_COVENANT_UNIVERSITY • 2019 • COMMERCE • objective

A firm is considering two investment projects. Project A has a net present value (NPV) of ₦100,000 and a payback period of 5 years. Project B has a NPV of ₦120,000 and a payback period of 4 years. Which project should the firm choose?

Answer Options

A. Project A
Correct Answer B. Project B
C. Both projects are equally good
D. Neither project is good
Correct Answer
B
Correct Option:
Project B

About This Question

This is Post Utme Covenant University 2019 Commerce Question 8. It is one of the objective questions from the 2019 Post Utme Covenant University Commerce examination.

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