Post Utme Igbinedion University 2022 Economics Question 28

Practice objective / multiple choice question 28 from the 2022 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2022 Economics Objective / Multiple Choice
Question 28 POST_UTME_IGBINEDION_UNIVERSITY • 2022 • ECONOMICS • objective

A firm is considering two investment projects. Project A has a net present value (NPV) of $100,000 and a \cost of $50,000. Project B has a NPV of $80,000 and a \cost of $30,000. If the firm has a \cost of capital of 10%, which project should it choose?

Answer Options

Correct Answer A. Project A
B. Project B
C. Both projects
D. Neither project
Correct Answer
A
Correct Option:
Project A

About This Question

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

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