Neco Model Questions Vol1 2020 Government Question 40
Practice objective / multiple choice question 40 from the 2020 Neco Model Questions Vol1 Government examination.
A government agency plans a five‑year project. The project has a fixed upfront cost of ₦200 million and a variable cost of ₦5 000 per unit of service delivered. Each unit generates revenue of ₦8 000. The agency expects to deliver the same number of units each year and may deliver at most 60 000 units per year. Using an annual discount rate of 8 %, the net present value (NPV) of the project over the five years must be at least ₦150 million. What is the minimum number of units that must be delivered each year to satisfy the NPV requirement? (Give the answer rounded up to the nearest whole unit.)
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About This Question
This is Neco Model Questions Vol1 2020 Government Question 40. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Government examination.
Difficulty level: Hard .
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