A if the company requires a 12 percent return on its


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

Year Cash Flow

0 -$39,000,000

1 63,000,000

2 -12,000,000

a) If the company requires a 12 percent return on its investments could the project be accepted?

b) What is the IRR for this project. How many IRRs are there?

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Finance Basics: A if the company requires a 12 percent return on its
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