Post Utme Uniport 2023 Economics Question 2

Practice objective / multiple choice question 2 from the 2023 Post Utme Uniport Economics examination.

Post Utme Uniport 2023 Economics Objective / Multiple Choice
Question 2 POST_UTME_UNIPORT • 2023 • ECONOMICS • objective

A firm is considering a new investment project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦70,000, Year 3: ₦90,000. U\sing the Net Present Value (NPV) method, calculate the present value of the project's cash flows and determine whether the project is profitable.

Answer Options

A. The present value of the project's cash flows is ₦20,000, and the project is profitable.
B. The present value of the project's cash flows is ₦30,000, and the project is profitable.
Correct Answer C. The present value of the project's cash flows is ₦40,000, and the project is profitable.
D. The present value of the project's cash flows is ₦50,000, and the project is not profitable.
Correct Answer
C
Correct Option:
The present value of the project's cash flows is ₦40,000, and the project is profitable.

About This Question

This is Post Utme Uniport 2023 Economics Question 2. It is one of the objective questions from the 2023 Post Utme Uniport Economics examination.

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