Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows:

Year

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?

a-2 Should the company accept this project? Yes or No?

b. The project has two IRR'S, namely _____ percent and _____ percent, in order from smallest to largest