Post Utme Unilag 2018 Commerce Question 17

Practice objective / multiple choice question 17 from the 2018 Post Utme Unilag Commerce examination.

Post Utme Unilag 2018 Commerce Objective / Multiple Choice
Question 17 POST_UTME_UNILAG • 2018 • COMMERCE • objective

A company is considering investing in a new project that has a high potential return but also involves a high level of risk. What is the main advantage of using the net present value (NPV) method to evaluate the project?

Answer Options

Correct Answer A. It takes into account the time value of money.
B. It ignores the time value of money.
C. It is a simple and easy-to-use method.
D. It is a complex and difficult-to-use method.
Correct Answer
A
Correct Option:
It takes into account the time value of money.

About This Question

This is Post Utme Unilag 2018 Commerce Question 17. It is one of the objective questions from the 2018 Post Utme Unilag Commerce examination.

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