Post Utme Uniport 2025 Economics Question 17

Practice objective / multiple choice question 17 from the 2025 Post Utme Uniport Economics examination.

Post Utme Uniport 2025 Economics Objective / Multiple Choice
Question 17 POST_UTME_UNIPORT • 2025 • ECONOMICS • objective

A firm is considering investing in a new project that has a net present value (NPV) of ₦100,000. However, the firm's \cost of capital is 10% per annum. U\sing the NPV rule, determine 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 greater than 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 Uniport 2025 Economics Question 17. It is one of the objective questions from the 2025 Post Utme Uniport Economics examination.

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