Post Utme Mountain Top University 2019 Commerce Question 30

Practice objective / multiple choice question 30 from the 2019 Post Utme Mountain Top University Commerce examination.

Post Utme Mountain Top University 2019 Commerce Objective / Multiple Choice
Question 30 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2019 • COMMERCE • objective

A firm is considering investing in a new project with a projected return on investment (ROI) of 12%. If the firm's cost of capital is 8%, is the project a good investment?

Answer Options

Correct Answer A. Yes, the project is a good investment
B. No, the project is not a good investment
C. The project is a good investment if the ROI is higher than the cost of capital
D. The project is a good investment if the ROI is lower than the cost of capital
Correct Answer
A
Correct Option:
Yes, the project is a good investment

About This Question

This is Post Utme Mountain Top University 2019 Commerce Question 30. It is one of the objective questions from the 2019 Post Utme Mountain Top University Commerce examination.

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