Post Utme Joseph Ayo Babalola University 2020 General Studies Question 32

Practice objective / multiple choice question 32 from the 2020 Post Utme Joseph Ayo Babalola University General Studies examination.

Post Utme Joseph Ayo Babalola University 2020 General Studies Objective / Multiple Choice
Question 32 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2020 • GENERAL STUDIES • objective

A company is considering investing in a new renewable energy project. The project has a capital cost of ₦500 million and an expected annual operating cost of ₦100 million. The project is expected to generate an annual revenue of ₦200 million for the next 10 years. What is the net present value (NPV) of the project, assuming a discount rate of 10%?

Answer Options

Correct Answer A. ₦1.5 billion
B. ₦1.2 billion
C. ₦1.8 billion
D. ₦2.0 billion
Correct Answer
A
Correct Option:
₦1.5 billion

About This Question

This is Post Utme Joseph Ayo Babalola University 2020 General Studies Question 32. It is one of the objective questions from the 2020 Post Utme Joseph Ayo Babalola University General Studies examination.

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