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

1. If the company requires a return of 12 percent on its investments, should it accept this project? Why?
2. Compute the IRR for this project. How many IRRs are there? Using the IRR decision rule, should the company accept the project? Whats going on here?

Year Cash Flow 0 -$48,000,000 1 71,000,000 2 13,000,000