OmegaTech is considering project A The project would require an initial investment of $58,600 00, and then have an expected cash flow of $77,500 00 in 4 years Project A has an internal rate of return of 9 11 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 is greater than $10 40 but less than $10 40 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 less than or equal to $10 40 The NPV that OmegaTech would compute for project A is equal to greater than $10 40 None of the other alternatives are correct

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Question: OmegaTech is considering project A. The project would require an initial investment of $58,600.00, and then have an expected cash flow of $77,500.00 in 4

OmegaTech is considering project A. The project would require an initial investment of $58,600.00, and then have an expected cash flow of $77,500.00 in 4 years. Project A has an internal rate of return of 9.11 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 is greater than -$10.40 but less than $10.40.
		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 less than or equal to -$10.40.
		The NPV that OmegaTech would compute for project A is equal to greater than $10.40.
		None of the other alternatives are correct

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