Question
OmegaTech is considering project A. The project would require an initial investment of $53,600.00, and then have an expected cash flow of $78,100.00 in 4
OmegaTech is considering project A. The project would require an initial investment of $53,600.00, and then have an expected cash flow of $78,100.00 in 4 years. Project A has an internal rate of return of 9.02 percent. The weighted-average cost of capital for OmegaTech is 6.91 percent. Which one of the following assertions is true?
| None of the other alternatives are correct | ||
| The NPV that OmegaTech would compute for project A is equal to greater than $11.67. | ||
| The NPV that OmegaTech would compute for project A is less than or equal to -$11.67. | ||
| The NPV that OmegaTech would compute for project A is greater than -$11.67 but less than $11.67. | ||
| The NPV that OmegaTech would compute for project A can not be computed from the information provided |
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