Post Utme Uniport 2021 Commerce Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Uniport Commerce examination.

Post Utme Uniport 2021 Commerce Objective / Multiple Choice
Question 6 POST_UTME_UNIPORT • 2021 • COMMERCE • objective

A company is considering the introduction of a new product line. The product line has a high initial investment but will generate significant revenue in the long run. The company's financial manager has calculated the net present value (NPV) of the project to be ₦120,000. However, the company's policy is to only invest in projects with an NPV of at least ₦150,000. What should the company do?

Answer Options

A. Accept the project and invest the initial amount
Correct Answer B. Reject the project and not invest the initial amount
C. Invest a portion of the initial amount to test the market
D. Delay the decision until more information is available
Correct Answer
B
Correct Option:
Reject the project and not invest the initial amount

About This Question

This is Post Utme Uniport 2021 Commerce Question 6. It is one of the objective questions from the 2021 Post Utme Uniport Commerce examination.

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