Question: OmegaTech is considering project A . The project would require an initial investment of $ 5 9 , 8 0 0 . 0 0 ,
OmegaTech is considering project A The project would require an initial investment of $ and then have an expected cash flow of $ in years. Project A has an internal rate of return of percent. The weightedaverage cost of capital for OmegaTech is percent. The risk of the project is very different from the average risk of the company. Which one of the following assertions is true?
The NPV that OmegaTech would compute for project A is less than or equal to $
The NPV that OmegaTech would compute for project A is greater than $ but less than $
The NPV that OmegaTech would compute for project A is equal to greater than $
The NPV that OmegaTech would compute for project A cannot be computed from the information provided
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