Question: Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows. If the company requires a return of 12 percent


Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows. If the company requires a return of 12 percent on its investments, what is the project's NPV? What are the IRRs for the project? Year 0 Year 1 Year 2 $ $ $ (45,000,000) 71,000,000 (15,000,000) Required return 12% Complete the following analysis. Do not hard code values in your calculations. Use a "Guess" of .99 to calculate the higher IRR and -99 to calculate the lower IRR. You must use the built-in Excel functions to answer this question. NPV Year 0 Year 1 Year 2 $ $ $ (45,000,000) 71,000,000 (15,000,000) Required return 12% Complete the following analysis. Do not hard code values in your calculations. Use a "Guess" of.99 to calculate the higher IRR and -99 to calculate the lower IRR. You must use the built-in Excel functions to answer this question. NPV Higher IRR Lower IRR
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
