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Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 $ 38,400,000 1 62,400,000 2
Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows:
Year Cash Flow
0 $ 38,400,000
1 62,400,000
2 11,400,000
a. What is the NPV for the project if the company requires a return of 10 percent?
b. This project has two IRR's, namely _______ percent and _______ percent, in 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. |
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