Post Utme Noun 2018 Commerce Question 14

Practice objective / multiple choice question 14 from the 2018 Post Utme Noun Commerce examination.

Post Utme Noun 2018 Commerce Objective / Multiple Choice
Question 14 POST_UTME_NOUN • 2018 • COMMERCE • objective

A company is considering the introduction of a new marketing campaign. The campaign is expected to generate ₥1 million in revenue in the first year, with a growth rate of 15% per annum for the next three years. What is the present value of the expected cash flows from the campaign, assuming a discount rate of 10%?

Answer Options

A. ₦1,200,000
B. ₦2,500,000
Correct Answer C. ₦3,800,000
D. ₦4,500,000
Correct Answer
C
Correct Option:
₦3,800,000

About This Question

This is Post Utme Noun 2018 Commerce Question 14. It is one of the objective questions from the 2018 Post Utme Noun Commerce examination.

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