Post Utme Uniport 2017 Economics Question 15

Practice objective / multiple choice question 15 from the 2017 Post Utme Uniport Economics examination.

Post Utme Uniport 2017 Economics Objective / Multiple Choice
Question 15 POST_UTME_UNIPORT • 2017 • ECONOMICS • objective

A firm is considering two investment projects, A and B. Project A requires an initial investment of ₦100,000 and is expected to generate a return of ₦120,000 per year for 5 years. Project B requires an initial investment of ₦150,000 and is expected to generate a return of ₦180,000 per year for 5 years. Which project has a higher net present value?

Answer Options

Correct Answer A. Project A
B. Project B
C. Both projects have the same net present value
D. Neither project has a positive net present value
Correct Answer
A
Correct Option:
Project A

About This Question

This is Post Utme Uniport 2017 Economics Question 15. It is one of the objective questions from the 2017 Post Utme Uniport Economics examination.

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