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

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

a. If the company requires a 10 percent return on its investments, should it accept this project why?

b. Compute the IRR for this project. How many 1RRs are there? Using the IRR decision rule, should the company accept the project? What??s going on here?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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Question Posted: Apr 28, 2011 03:11 AM

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

Question:

Cash Flow Year -S27,000,000 46,000,000 -6,000,000 2.

Step by Step Answer:

a The equation for the NPV of the project is NPV 27000000 4600000...View the full answer

Fundamentals of Corporate Finance

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