Post Utme Ui 2025 Economics Question 19

Practice objective / multiple choice question 19 from the 2025 Post Utme Ui Economics examination.

Post Utme Ui 2025 Economics Objective / Multiple Choice
Question 19 POST_UTME_UI • 2025 • ECONOMICS • objective

A company in Nigeria is considering investing in a new project that requires an initial investment of ₦10 million. The company expects the project to generate a return of ₦5 million per year for 5 years. U\sing the concept of net present value, explain why the company may choose to invest in the project.

Answer Options

Correct Answer A. The project has a positive net present value, making it a profitable investment for the company.
B. The project has a negative net present value, making it an unprofitable investment for the company.
C. The project has a zero net present value, making it a break-even investment for the company.
D. The project has a high risk, making it an unprofitable investment for the company.
Correct Answer
A
Correct Option:
The project has a positive net present value, making it a profitable investment for the company.

About This Question

This is Post Utme Ui 2025 Economics Question 19. It is one of the objective questions from the 2025 Post Utme Ui Economics examination.

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