Post Utme Unilorin 2025 Economics Question 15

Practice objective / multiple choice question 15 from the 2025 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2025 Economics Objective / Multiple Choice
Question 15 POST_UTME_UNILORIN • 2025 • ECONOMICS • objective

A firm is considering investing in a new project with a net present value (NPV) of ₦1,000. The firm's \cost of capital is 10%. U\sing the NPV rule, explain whether the firm should invest in the project.

Answer Options

Correct Answer A. The firm should invest in the project because the NPV is positive.
B. The firm should not invest in the project because the NPV is negative.
C. The firm should invest in the project because the NPV is equal to the \cost of capital.
D. The firm should not invest in the project because the NPV is less than the \cost of capital.
Correct Answer
A
Correct Option:
The firm should invest in the project because the NPV is positive.

About This Question

This is Post Utme Unilorin 2025 Economics Question 15. It is one of the objective questions from the 2025 Post Utme Unilorin Economics examination.

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