Post Utme Ui 2020 Commerce Question 34

Practice objective / multiple choice question 34 from the 2020 Post Utme Ui Commerce examination.

Post Utme Ui 2020 Commerce Objective / Multiple Choice
Question 34 POST_UTME_UI • 2020 • COMMERCE • objective

A firm is considering two production methods. Method A requires an initial investment of ₦100,000 and produces 1,000 units per year. Method B requires an initial investment of ₦150,000 and produces 1,500 units per year. If the selling price is ₦75 per unit, which method has a higher net present value?

Answer Options

A. Method A
Correct Answer B. Method B
C. Both methods have the same net present value
D. Neither method has a higher net present value
Correct Answer
B
Correct Option:
Method B

About This Question

This is Post Utme Ui 2020 Commerce Question 34. It is one of the objective questions from the 2020 Post Utme Ui Commerce examination.

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