Post Utme Crawford University 2019 Commerce Question 30

Practice objective / multiple choice question 30 from the 2019 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2019 Commerce Objective / Multiple Choice
Question 30 POST_UTME_CRAWFORD_UNIVERSITY • 2019 • COMMERCE • objective

A firm is considering the introduction of a new product line. The product requires a significant investment in marketing and advertising. However, the company's financial analysts have estimated that the return on investment (ROI) for the product will be 15% per annum. If the company's cost of capital is 10% per annum, what is the expected net present value (NPV) of the investment?

Answer Options

A. ₦100,000
Correct Answer B. ₦120,000
C. ₦150,000
D. ₦180,000
Correct Answer
B
Correct Option:
₦120,000

About This Question

This is Post Utme Crawford University 2019 Commerce Question 30. It is one of the objective questions from the 2019 Post Utme Crawford University Commerce examination.

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