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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-1

What is the NPV for the project if the company requires a return of 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV $

a-2 Should the firm accept this project?
multiple choice
  • Yes

  • No

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.) (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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