Compute the IRR for this project

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Reference no: EM13972581

Light Sweet Petroleum Inc., is trying to evaluate a generation project with the following cash flows:

Year       Cash Flow

0       -45,000,000

1       71,000,000

2       -15,000,000

If this company requires a return of 12% on its investments, should it accept this project? Why?

Compute the IRR for this project. How many IRRs are there? Using the IRR decision rule, should the company accept the project? What’s going on here?

Reference no: EM13972581

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