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Kong Petroleum, Inc. is trying to evaluate a generator project with the following cash flows: Year Cash Flow 0 -28,000,000 1 53,000,000 2 -8,000,000 If
- Kong Petroleum, Inc. is trying to evaluate a generator project with the following cash flows:
| Year | Cash Flow |
| 0 | -28,000,000 |
| 1 | 53,000,000 |
| 2 | -8,000,000 |
- If the company requires a 10% return on its investments, should it accept this project? Why?
- Compute the IRR for this project. How many IRRs are there? If you apply the IRR decision rule, should you accept the project or not? Whats going on here?
*Please type the calculations and answers*
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Options Futures And Other Derivatives
Authors: John Hull
11th Global Edition
1292410655, 9781292410654
