Post Utme Pan Atlantic University 2025 Commerce Question 22

Practice objective / multiple choice question 22 from the 2025 Post Utme Pan Atlantic University Commerce examination.

Post Utme Pan Atlantic University 2025 Commerce Objective / Multiple Choice
Question 22 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2025 • COMMERCE • objective

A firm is considering setting up a new production line to manufacture a new product. The production line will require an initial investment of ₦500 million and will generate annual revenues of ₦1.2 billion. The firm's cost of capital is 10% per annum. What is the net present value (NPV) of the project?

Answer Options

Correct Answer A. ₦1.5 billion
B. ₦1.2 billion
C. ₦500 million
D. ₦0
Correct Answer
A
Correct Option:
₦1.5 billion

About This Question

This is Post Utme Pan Atlantic University 2025 Commerce Question 22. It is one of the objective questions from the 2025 Post Utme Pan Atlantic University Commerce examination.

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