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How to calculate the other IRR? Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow
How to calculate the other IRR?
Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 1 $39,900,000 63,900,000 - 12,900,000 2 a-1 What is the NPV for the project if the company requires a return of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete and correct. NPV $ 6,869,770.41 a-2 Should the company accept this project? Yes No X Answer is not complete. b. This project has two IRR's, namely percent 36.46 percent, in and order from smallest to largest. (Note: If you can only compute one IRR value, you should input that amount into both answer boxes in order to obtain some credit.) (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)Step by Step Solution
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