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Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 $ 39,000,000 1 63,000,000 2
Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: |
Year | Cash Flow | ||
0 | $ | 39,000,000 | |
1 | 63,000,000 | ||
2 | 12,000,000 | ||
a | What is the NPV for the project if the company requires a 12 percent return? |
NPV | $ |
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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