Gce Model Questions Vol1 2019 Government Question 7
Practice objective / multiple choice question 7 from the 2019 Gce Model Questions Vol1 Government examination.
A local council has £2\,million to allocate among three projects. Project X costs £1.2\,million and yields an annual benefit of £300\,000 for 5 years. Project Y costs £0.8\,million and yields £250\,000 per year for 4 years. Project Z costs £0.9\,million and yields £200\,000 per year for 6 years. Using a discount rate of 5\% per annum, determine which combination of projects maximises the total present value of benefits without exceeding the budget. List the projects that should be funded.
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About This Question
This is Gce Model Questions Vol1 2019 Government Question 7. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Government examination.
Difficulty level: Hard .
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