Post Utme Unilorin 2022 Commerce Question 25

Practice objective / multiple choice question 25 from the 2022 Post Utme Unilorin Commerce examination.

Post Utme Unilorin 2022 Commerce Objective / Multiple Choice
Question 25 POST_UTME_UNILORIN • 2022 • COMMERCE • objective

A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment of ₦10 million, but it is expected to generate ₦20 million in revenue per year for 5 years. Strategy B involves a lower initial investment of ₦5 million, but it is expected to generate ₦15 million in revenue per year for 3 years. Which strategy has a higher net present value (NPV)?

Answer Options

Correct Answer A. Strategy A
B. Strategy B
C. Both strategies have the same NPV
D. Neither strategy has a higher NPV
Correct Answer
A
Correct Option:
Strategy A

About This Question

This is Post Utme Unilorin 2022 Commerce Question 25. It is one of the objective questions from the 2022 Post Utme Unilorin Commerce examination.

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