Post Utme Veritas University 2018 Commerce Question 12

Practice objective / multiple choice question 12 from the 2018 Post Utme Veritas University Commerce examination.

Post Utme Veritas University 2018 Commerce Objective / Multiple Choice
Question 12 POST_UTME_VERITAS_UNIVERSITY • 2018 • COMMERCE • objective

A company is considering two different production processes for a new product. Process A requires an initial investment of ₦100,000 and produces 100 units per day, while Process B requires an initial investment of ₦150,000 and produces 120 units per day. If the company expects to produce the product for 5 years, which process should it choose?

Answer Options

A. Process A, because it requires a lower initial investment.
B. Process B, because it produces more units per day.
C. Process A, because it has a higher production rate per unit of investment.
Correct Answer D. Process B, because it has a higher total production over the 5-year period.
Correct Answer
D
Correct Option:
Process B, because it has a higher total production over the 5-year period.

About This Question

This is Post Utme Veritas University 2018 Commerce Question 12. It is one of the objective questions from the 2018 Post Utme Veritas University Commerce examination.

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