Question
OmegaTech is considering project A. The project would require an initial investment of $52,100.00, and then have an expected cash flow of $77,400.00 in 4
OmegaTech is considering project A. The project would require an initial investment of $52,100.00, and then have an expected cash flow of $77,400.00 in 4 years. Project A has an internal rate of return of 9.12 percent. The weighted-average cost of capital for OmegaTech is 6.51 percent. Which one of the following assertions is true?
| The NPV that OmegaTech would compute for project A can not be computed from the information provided | ||
| The NPV that OmegaTech would compute for project A is greater than -$10.09 but less than $10.09. | ||
| The NPV that OmegaTech would compute for project A is less than or equal to -$10.09. | ||
| The NPV that OmegaTech would compute for project A is equal to greater than $10.09. | ||
| None of the other alternatives are correct |
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Financial Management For Nurse Managers Merging The Heart With The Dollar
Authors: Janne Dunham-Taylor, Joseph Z. Pinczuk
1st Edition
1284031039, 9781284031034
