Neco Model Questions Vol1 2017 Government Question 50
Practice objective / multiple choice question 50 from the 2017 Neco Model Questions Vol1 Government examination.
A public agency plans to implement a new e‑government service. The initial capital outlay is ₦150 million. The service is expected to generate annual savings of ₦45 million for citizens and annual operating costs of ₦12 million. The agency uses a discount rate of \(8\%\) and evaluates the project over a 7‑year horizon. In addition, the agency requires that the net present value (NPV) be at least \(20\%\) of the initial outlay for the project to be considered worthwhile. Calculate the NPV of the project (in millions of naira, rounded to one decimal place) and state whether it meets the agency's criterion.
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About This Question
This is Neco Model Questions Vol1 2017 Government Question 50. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Government examination.
Difficulty level: Hard .
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