Post Utme Ui 2019 Commerce Question 40

Practice objective / multiple choice question 40 from the 2019 Post Utme Ui Commerce examination.

Post Utme Ui 2019 Commerce Objective / Multiple Choice
Question 40 POST_UTME_UI • 2019 • COMMERCE • objective

A company is considering the introduction of a new product line. The product line is expected to generate additional revenue of ₦2.1 billion per annum, but it will also require an initial investment of ₦8.5 billion. The company's cost of capital is 10% per annum. What is the expected net present value (NPV) of the new product line?

Answer Options

A. ₦-1.4 billion
Correct Answer B. ₦-1.0 billion
C. ₦-0.6 billion
D. ₦0.2 billion
Correct Answer
B
Correct Option:
₦-1.0 billion

About This Question

This is Post Utme Ui 2019 Commerce Question 40. It is one of the objective questions from the 2019 Post Utme Ui Commerce examination.

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support