Post Utme Madonna University 2018 General Studies Question 5

Practice objective / multiple choice question 5 from the 2018 Post Utme Madonna University General Studies examination.

Post Utme Madonna University 2018 General Studies Objective / Multiple Choice
Question 5 POST_UTME_MADONNA_UNIVERSITY • 2018 • GENERAL STUDIES • objective

A firm is considering two alternative projects with the following cash flows: Project A: ₦10 million in year 1, ₦20 million in year 2, and ₦30 million in year 3. Project B: ₦15 million in year 1, ₦25 million in year 2, and ₦35 million in year 3. Which project has a higher net present value (NPV)?

Answer Options

Correct Answer A. Project A
B. Project B
C. Both projects have the same NPV
D. Neither project has a higher NPV
Correct Answer
A
Correct Option:
Project A

About This Question

This is Post Utme Madonna University 2018 General Studies Question 5. It is one of the objective questions from the 2018 Post Utme Madonna University General Studies examination.

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