Post Utme Futo 2025 Economics Question 39

Practice objective / multiple choice question 39 from the 2025 Post Utme Futo Economics examination.

Post Utme Futo 2025 Economics Objective / Multiple Choice
Question 39 POST_UTME_FUTO • 2025 • ECONOMICS • objective

A firm is considering two alternative production processes, A and B. Process A requires an initial investment of $100,000 and generates a profit of $50,000 per year. Process B requires an initial investment of $150,000 and generates a profit of $75,000 per year. If the firm has a discount rate of 10%, which process should it choose?

Answer Options

Correct Answer A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Correct Answer
A
Correct Option:
Process A

About This Question

This is Post Utme Futo 2025 Economics Question 39. It is one of the objective questions from the 2025 Post Utme Futo Economics examination.

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