Post Utme Rhema University 2022 Commerce Question 37

Practice objective / multiple choice question 37 from the 2022 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2022 Commerce Objective / Multiple Choice
Question 37 POST_UTME_RHEMA_UNIVERSITY • 2022 • COMMERCE • objective

A company is considering two different production processes for a new product. Process A requires an initial investment of ₦1,000,000 and generates a profit of ₦500,000 per year. Process B requires an initial investment of ₦500,000 and generates a profit of ₦750,000 per year. Which process should the company choose?

Answer Options

A. Process A
Correct Answer B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Correct Answer
B
Correct Option:
Process B

About This Question

This is Post Utme Rhema University 2022 Commerce Question 37. It is one of the objective questions from the 2022 Post Utme Rhema University Commerce examination.

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