Question: Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 $39,500,000 1 60,500,000 2 14,500,000 (a)

Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows:
Year Cash Flow
0 $39,500,000
1 60,500,000
2 14,500,000
(a)

If the company requires a 8 percent return on its investments, what is the NPV of the project?

NPV= $4087105.63

(b)

Compute the IRRs for this project.

Internal rate of return %: 23.42%

Internal rate of return % : ??

What is the second internal rate of return?

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