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
  • No

  • Yes

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.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!