Post Utme Redeemers University 2020 Commerce Question 15

Practice objective / multiple choice question 15 from the 2020 Post Utme Redeemers University Commerce examination.

Post Utme Redeemers University 2020 Commerce Objective / Multiple Choice
Question 15 POST_UTME_REDEEMERS_UNIVERSITY • 2020 • COMMERCE • objective

A company is considering two different investment projects. Project A has a 5-year life, an initial investment of ₦100,000, and annual cash inflows of ₦20,000. Project B has a 3-year life, an initial investment of ₦50,000, and annual cash inflows of ₦15,000. Which project has a higher net present value?

Answer Options

Correct Answer A. Project A
B. Project B
C. Both projects have the same NPV
D. Neither project has a positive NPV
Correct Answer
A
Correct Option:
Project A

About This Question

This is Post Utme Redeemers University 2020 Commerce Question 15. It is one of the objective questions from the 2020 Post Utme Redeemers University Commerce examination.

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