Post Utme Nile University 2024 General Studies Question 9

Practice objective / multiple choice question 9 from the 2024 Post Utme Nile University General Studies examination.

Post Utme Nile University 2024 General Studies Objective / Multiple Choice
Question 9 POST_UTME_NILE_UNIVERSITY • 2024 • GENERAL STUDIES • objective

A company is considering investing in a new project that requires an initial investment of ₦10 million and is expected to generate a profit of ₦5 million per year for 5 years. Which of the following is a valid way to calculate the net present value (NPV) of the project?

Answer Options

Correct Answer A. Using the formula NPV = (P / (1 + r))^n
B. Using the formula NPV = P + (P / (1 + r))^n
C. Using the formula NPV = P - (P / (1 + r))^n
D. Using the formula NPV = P + (P / (1 + r))^n - (P / (1 + r))^(n-1)
Correct Answer
A
Correct Option:
Using the formula NPV = (P / (1 + r))^n

About This Question

This is Post Utme Nile University 2024 General Studies Question 9. It is one of the objective questions from the 2024 Post Utme Nile University General Studies examination.

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