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Belgravia Petroleum Inc. is trying to evaluate a generation project with the following cash flows: Year Cashflow 0 -$300,000,000 1 $63,000,000 2 $85,000,000 3 -$50,000,000

Belgravia Petroleum Inc. is trying to evaluate a generation project with the following cash flows: Year Cashflow 0 -$300,000,000 1 $63,000,000 2 $85,000,000 3 -$50,000,000 4 $154,000,000 5 $175,000,000 6 -$50,000,000 7 $70,000,000 8 $72,000,000 - Construct a spreadsheet and calculate the following (the required rate of return is 7%): o Payback period o Discounted payback period o Net present value (NPV) o Modified IRR The discounting approach The reinvestment approach The combination approach - Based on your analysis, should the company take the project? Why?

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