Question
Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 $ 39,300,000 1 63,300,000 2
Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: |
Year | Cash Flow | ||
0 | $ | 39,300,000 | |
1 | 63,300,000 | ||
2 | 12,300,000 | ||
a-1 | What is the NPV for the project if the company requires a return of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
a-2 | Should the company accept this project? |
|
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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