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.)
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