Waec Model Questions Vol1 2020 Government Question 38
Practice objective / multiple choice question 38 from the 2020 Waec Model Questions Vol1 Government examination.
A local government is choosing a waste‑management programme. The total waste generated annually is 10,000 tonnes. The three options are:\n\nOption 1: Initial cost ₦2,000,000; operating cost ₦300,000 per year; reduces waste by 15%.\nOption 2: Initial cost ₦1,200,000; operating cost ₦500,000 per year; reduces waste by 20%.\nOption 3: Initial cost ₦1,800,000; operating cost ₦250,000 per year; reduces waste by 12%.\n\nUsing a discount rate of 8% per annum, calculate the net present value (NPV) of the total cost for each option over 5 years, then determine which option gives the greatest waste‑reduction per million Naira of NPV cost. Show all steps.
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About This Question
This is Waec Model Questions Vol1 2020 Government Question 38. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Government examination.
Difficulty level: Hard .
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