Question: Bohrer Mining, Inc., is trying to evaluate a project with the following cash flows: Year Cash Flow 0 $ 39,600,000 1 63,600,000 2 12,600,000 a-1

Bohrer Mining, Inc., is trying to evaluate a project with the following cash flows:

Year Cash Flow
0 $ 39,600,000
1 63,600,000
2 12,600,000

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.) NPV $ a-2 Should the firm accept this project?

No

Yes

b. This project has two IRRs, namely_____ percent and ______percent, in order from smallest to largest. (Note: If you can only compute one IRR value, you should input that amount into both answer boxes in order to obtain some credit.) (Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!