Post Utme Wellspring University 2018 Economics Question 8

Practice objective / multiple choice question 8 from the 2018 Post Utme Wellspring University Economics examination.

Post Utme Wellspring University 2018 Economics Objective / Multiple Choice
Question 8 POST_UTME_WELLSPRING_UNIVERSITY • 2018 • ECONOMICS • objective

A firm is considering investing in a new project with an initial \cost of ₦1,000,000 and expected annual profits of ₦200,000 for 5 years. If the firm's \cost of capital is 10%, calculate the net present value (NPV) of the project.

Answer Options

A. ₦500,000
Correct Answer B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Correct Answer
B
Correct Option:
₦750,000

About This Question

This is Post Utme Wellspring University 2018 Economics Question 8. It is one of the objective questions from the 2018 Post Utme Wellspring University Economics examination.

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