Question: Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows. If the company requires a return of 12 percent on

Howell 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	($52,000,000)
Year 1	$74,000,000
Year 2	($12,000,000)
Required return	12%

NPV
Higher IRR
Lower IRR

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