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all Sprint @ 33%D 10:10 PM Reader View Available 14. Problems with IRR LO5] Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow -$48,000,000 0 1 71,000,000 13,000,000 a. If the company requires a return of 12 percent investments, should it accept this project? Why? on its b. Compute the IRR for this project. How many IRRS are there? Using the IRR decision rule, should the company accept the project? What's going on here? 15. Calculating Profitability Index [LO7] What is the profitability index for the following set of cash flows if the relevant discount rate is 10 percent? What if discount rate is 15 percent? If it is 22 percent? Year Cash Flow -$16,700 9,700 1 2 7,800 3 4,300 16. Problems with Profitability Index [LO1, 71 The S Corporation is trying to choose between the follo two mutually exclusive design projects: Cash Flow (II) Cash Flow (I) Year 0 -$63,000 -$15,500 28,900 7,900 2 28.900 7.900 N