Neco Model Questions Vol1 2021 Commerce Question 10
Practice objective / multiple choice question 10 from the 2021 Neco Model Questions Vol1 Commerce examination.
A company plans two separate advertising campaigns. The television campaign requires an upfront outlay of ₦5 000 000 and generates a monthly increase in sales revenue of ₦800 000 for 12 months, with a monthly operating cost of ₦100 000. The social‑media campaign requires an upfront outlay of ₦2 000 000 and generates a monthly increase in sales revenue of ₦500 000 for 12 months, with a monthly operating cost of ₦50 000. The corporate tax rate is \(30\%\) and the discount rate is 12\% per annum, compounded monthly. Assuming cash flows occur at the end of each month, which campaign has the higher after‑tax net present value and what is that NPV (rounded to the nearest thousand naira)?
Answer Options
About This Question
This is Neco Model Questions Vol1 2021 Commerce Question 10. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.