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 $ 46,000,000
Year 1 $ 71,000,000
Year 2 $ (15,000,000)
Required return 12%
Use a "guess" of .99 to calculate the higher IRR and -.99 to calculate the lower IRR
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