Question: Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 -$38,500,000 1 62,500,000 2 -$11,500,000 1.
| Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: |
| Year | Cash Flow | ||
| 0 | -$38,500,000 | ||
| 1 | 62,500,000 | ||
| 2 | -$11,500,000 | ||
| 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. |
| 2. | Should the firm accept this project? |
|
| 3. | This project has two IRR's namely _______ % & _________%, in order from smallest to largest. (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.) |
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