Post Utme Elizade University 2020 Commerce Question 39

Practice objective / multiple choice question 39 from the 2020 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2020 Commerce Objective / Multiple Choice
Question 39 POST_UTME_ELIZADE_UNIVERSITY • 2020 • COMMERCE • objective

A firm is considering investing in a new project. The project has a required rate of return of 15% and an expected return of 18%. The firm's cost of capital is 12%. What is the project's sensitivity to the required rate of return?

Answer Options

A. Highly sensitive
Correct Answer B. Moderately sensitive
C. Not sensitive
D. Very insensitive
Correct Answer
B
Correct Option:
Moderately sensitive

About This Question

This is Post Utme Elizade University 2020 Commerce Question 39. It is one of the objective questions from the 2020 Post Utme Elizade University Commerce examination.

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