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OmegaTech is considering project A. The project would require an initial investment of $51,000.00, and then have an expected cash flow of $79,100.00 in 4
OmegaTech is considering project A. The project would require an initial investment of $51,000.00, and then have an expected cash flow
of $79,100.00 in 4 years. Project A has an internal rate of return of 9.88 percent. The weighted-average cost of capital for OmegaTech is
6.35 percent. Which one of the following assertions is true?
O The NPV that OmegaTech would compute for project A is greater than -$10.56 but less than $10.56.
O The NPV that Omega Tech would compute for project A is less than or equal to -$10.56.
O None of the other alternatives are correct
O The NPV that Omega Tech would compute for project A can not be computed from the information provided
O The NPV that Omega Tech would compute for project A is equal to greater than $10.56.
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