Question: Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 39,900,000 1 63,900,000 2 -$12,900,000 a-1.
Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows:
| Year | Cash Flow |
| 0 | 39,900,000 |
| 1 | 63,900,000 |
| 2 | -$12,900,000 |
| a-1. | What is the NPV for the project if the company requires a return of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| a-2. | Should the firm accept this project? |
multiple choice
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| b. | (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| This project has two IRR's, namely___________percent and__________________percent, in order from smallest to largest.(Note: If you can only compute one IRR value, you should input that amount into both answer boxes in order to obtain some credit.) |
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