Post Utme Elizade University 2022 Commerce Question 28

Practice objective / multiple choice question 28 from the 2022 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2022 Commerce Objective / Multiple Choice
Question 28 POST_UTME_ELIZADE_UNIVERSITY • 2022 • COMMERCE • objective

A company is considering two different investment projects. Project A has a higher initial investment but generates higher returns over time. Project B has a lower initial investment but generates lower returns over time. Which of the following is a correct statement regarding the two projects?

Answer Options

A. Project A is riskier than Project B because it has a higher initial investment.
B. Project B is riskier than Project A because it generates lower returns over time.
Correct Answer C. Project A is less risky than Project B because it generates higher returns over time.
D. Project B is more attractive than Project A because it has a lower initial investment.
Correct Answer
C
Correct Option:
Project A is less risky than Project B because it generates higher returns over time.

About This Question

This is Post Utme Elizade University 2022 Commerce Question 28. It is one of the objective questions from the 2022 Post Utme Elizade University Commerce examination.

View More Post Utme Elizade University 2022 Commerce Questions More Post Utme Elizade University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support