Question
Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 $ 48,000,000 1 71,000,000 2
Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: |
Year | Cash Flow | |||
0 | $ | 48,000,000 | ||
1 | 71,000,000 | |||
2 | 13,000,000 | |||
a-1. | What is the NPV for the project if the company requires a 12 percent return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Yes No b.This project has two IRR's, namely ________ percent and _________ percent, in orderfrom smallest to largest. (Note: If you can only compute one IRR value, you should input thatamount into both answer boxes in order to obtain some credit.)(A negative answer should beindicated by a minus sign. Do not round intermediate calculations and enter youranswers as a percent rounded to 2 decimal places, e.g., 32.16.) |
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