Neco 2017 Government Question 27
Practice objective / multiple choice question 27 from the 2017 Neco Government examination.
Three development projects are proposed for a local government. Project X costs \(120\) million naira and will generate a uniform benefit of \(30\) million naira per year for 6 years; the discount rate applicable is 10 %. Project Y costs \(150\) million naira and will generate a uniform benefit of \(40\) million naira per year for 5 years; the discount rate is 12 %. Project Z costs \(100\) million naira and will generate a uniform benefit of \(20\) million naira per year for 8 years; the discount rate is 8 %. Only one project can be funded. Using the net present value (NPV) method, determine which project should be selected.
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About This Question
This is Neco 2017 Government Question 27. It is one of the objective questions from the 2017 Neco Government examination.
Difficulty level: Hard .
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