Post Utme Unn 2019 Commerce Question 3

Practice objective / multiple choice question 3 from the 2019 Post Utme Unn Commerce examination.

Post Utme Unn 2019 Commerce Objective / Multiple Choice
Question 3 POST_UTME_UNN • 2019 • COMMERCE • objective

A company is considering the introduction of a new production process that involves the use of a new machine. The machine is expected to increase productivity by 20%, but it will also require a significant investment in training and maintenance. Which of the following is the most appropriate way for the company to evaluate the potential benefits and costs of the new machine?

Answer Options

Correct Answer A. Conduct a cost-benefit analysis to determine the net present value of the investment
B. Use the payback period method to determine the time required to recover the investment
C. Conduct a sensitivity analysis to determine the potential impact of changes in productivity and costs
D. Negotiate with suppliers to reduce the cost of the machine
Correct Answer
A
Correct Option:
Conduct a cost-benefit analysis to determine the net present value of the investment

About This Question

This is Post Utme Unn 2019 Commerce Question 3. It is one of the objective questions from the 2019 Post Utme Unn Commerce examination.

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