Post Utme Crawford University 2024 Commerce Question 32

Practice objective / multiple choice question 32 from the 2024 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2024 Commerce Objective / Multiple Choice
Question 32 POST_UTME_CRAWFORD_UNIVERSITY • 2024 • COMMERCE • objective

A company is considering the purchase of a new machine that will cost ₦1,500,000. The machine is expected to last for 5 years and will save the company ₦200,000 per year in operating costs. What is the net present value (NPV) of the machine, assuming a discount rate of 10%?

Answer Options

A. ₦1,000,000
Correct Answer B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Correct Answer
B
Correct Option:
₦1,200,000

About This Question

This is Post Utme Crawford University 2024 Commerce Question 32. It is one of the objective questions from the 2024 Post Utme Crawford University Commerce examination.

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