Evaluate a generation project with the cash flows


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

Year

Cash Flow

0

-$25,000,000

1

$51,000,000

2

-$9,000,000

a. If the company requires a 10 percent return on its investments, should it accept this project? Why?

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Finance Basics: Evaluate a generation project with the cash flows
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