Post Utme Oau 2024 Economics Question 3

Practice objective / multiple choice question 3 from the 2024 Post Utme Oau Economics examination.

Post Utme Oau 2024 Economics Objective / Multiple Choice
Question 3 POST_UTME_OAU • 2024 • ECONOMICS • objective

Consider a firm that is considering investing in a new project. The project has a \cost of $100,000 and is expected to generate a cash flow of $150,000 in the first year, $120,000 in the second year, and $90,000 in the third year. What is the net present value (NPV) of the project if the discount rate is 10%?

Answer Options

Correct Answer A. \( NPV = 50,000 \)
B. \( NPV = 30,000 \)
C. \( NPV = 20,000 \)
D. \( NPV = 10,000 \)
Correct Answer
A
Correct Option:
\( NPV = 50,000 \)

About This Question

This is Post Utme Oau 2024 Economics Question 3. It is one of the objective questions from the 2024 Post Utme Oau Economics examination.

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