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5 Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 5/10 points awarded 1

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5 Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 5/10 points awarded 1 2. 39,200,000 $ 63,200,000 - 12,200,000 8 04:18:25 Scored a-1 What is the NPV for the project if the company requires a return of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ 8,171,900.83 % a-2 Should the firm accept this project? No X Yes b. This project has two IRR's, namely -77.58 percent and 38.80 percent, in order from smallest to largest. (Note: One of the answers may be negative. If you can only compute one IRR value, you should input that amount into both answer boxes in order to obtain partial credit.) (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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