Question: OmegaTech is considering project A. The project would require an initial investment of $59,800.00, and then have an expected cash flow of $74,600.00 in 4
OmegaTech is considering project A. The project would require an initial investment of $59,800.00, and then have an expected cash flow of $74,600.00 in 4 years. Project A has an internal rate of return of 9.95 percent. The weighted-average cost of capital for OmegaTech is 6.94 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 less than or equal to -$11.77.
The NPV that OmegaTech would compute for project A is greater than -$11.77 but less than $11.77.
The NPV that OmegaTech would compute for project A is equal to greater than $11.77.
The NPV that OmegaTech would compute for project A can not be computed from the information provided
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