Question: X 5 ? 1 Assessment Tool iFrame FILE HOME Calculating NPV and multiple IRRS - Excel FORMULAS DATA REVIEW INSERT PAGE LAYOUT VIEW Sign! i

 X 5 ? 1 Assessment Tool iFrame FILE HOME Calculating NPV

X 5 ? 1 Assessment Tool iFrame FILE HOME Calculating NPV and multiple IRRS - Excel FORMULAS DATA REVIEW INSERT PAGE LAYOUT VIEW Sign! i Arial 12 Paste BIU % Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Clipboard 2 Font D17 : X D E F G H I J K 1 N = 2 3 Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flow If the company requires a return of 12 percent on its investments, what is the project's NPV? Wha are the IRRs for the project? 4 5 6 7 Year 0 Year 1 Year 2 7 $ $ $ (45,000,000) 71,000,000 (15,000,000) 8 9 10 Required return 12% 11 12 13 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 us the built-in Excel functions to answer this question. 14 15 NPV 16 17 Higher IRR Lower IRR 18 19

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