Gce Model Questions Vol1 2022 Economics Question 42
Practice objective / multiple choice question 42 from the 2022 Gce Model Questions Vol1 Economics examination.
The government is evaluating a 20 km road project that costs an upfront construction outlay of \(\text{₦}150\) million. The road is expected to generate annual benefits of \(\text{₦}30\) million for the first five years; thereafter the benefit grows by 5 % each year. Annual maintenance cost is constant at \(\text{₦}5\) million. Using a discount rate of 8 % per annum, calculate the net present value (NPV) of the project over a 10‑year horizon and state whether the project is economically viable.
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About This Question
This is Gce Model Questions Vol1 2022 Economics Question 42. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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