Accounting Multiple Choice Question – 3 November 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Photo by Nataliya Vaitkevich on Pexels.com

A company can only invest £1 million in the current period.

  • project 1 – capital requirement (current period) £1.2m with an NPV of £5m
  • project 2 – capital requirement (current period) £1.0m with an NPV of £2.5m
  • project 3 – capital requirement (current period) £0.6m with an NPV of £1.5m
  • project 4 – capital requirement (current period) £0.4m with an NPV of £1.2m
  • project 5 – capital requirement (current period) £0.4m with an NPV of £1.0m

Which project(s) should the company undertake to maximise its shareholders’ wealth?

Select ONE answer:

  1. 1
  2. 2
  3. 3 and 5
  4. 3 and 4

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

%d bloggers like this: