Question: Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 $38,900,000 62,900,000 11,900,000 2 a-1

 Light Sweet Petroleum, Inc., is trying to evaluate a generation project

Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 $38,900,000 62,900,000 11,900,000 2 a-1 What is the NPV for the project if the ompany requires a return of 11 percent? (Do not rou intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV 8108359 a-2 Should the firm accept this project? O Yes No b. This project has two IRR's, namely -39.82 percent and 39.82 percent, in order from smallest to argest. (Note: If you can only compute one IRR value, you should input that amount into both answer boxes in order to obtain some credit.) (Negative amount should be indicated by a minus s not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal ign. Do places, e.g32.16

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!