Gce Model Questions Vol1 2024 Economics Question 5
Practice objective / multiple choice question 5 from the 2024 Gce Model Questions Vol1 Economics examination.
A government is evaluating a new railway line. The project requires an initial capital outlay of \(200\) million naira. Each year for ten years it generates revenue of \(40\) million naira and incurs operating costs of \(15\) million naira. Assuming the project is acceptable only if its net present value (NPV) is non‑negative, determine the highest discount rate (to two decimal places) at which the project is still viable.
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About This Question
This is Gce Model Questions Vol1 2024 Economics Question 5. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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