Post Utme Joseph Ayo Babalola University 2023 Economics Question 38

Practice objective / multiple choice question 38 from the 2023 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2023 Economics Objective / Multiple Choice
Question 38 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2023 • ECONOMICS • objective

A firm is considering investing in a new project with an initial \cost of ₦100,000 and expected annual profits of ₦20,000. If the firm's \cost of capital is 10% and the project is expected to last for 5 years, what is the net present value (NPV) of the project?

Answer Options

Correct Answer A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Correct Answer
A
Correct Option:
₦50,000

About This Question

This is Post Utme Joseph Ayo Babalola University 2023 Economics Question 38. It is one of the objective questions from the 2023 Post Utme Joseph Ayo Babalola University Economics examination.

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