Question: Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 $ 52,000,000 1 74,000,000 2 12,000,000

Howell Petroleum, Incorporated, is trying to evaluate a generation project with the

following cash flows: Year Cash Flow 0 $ 52,000,000 1 74,000,000 2 12,000,000

a-1. What is the NPV for the project if the company requires a 12 percent return? (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?

ANSWER FOR IS 4.505,102.04

b. This project has two IRR's, namely ??? percent

23.64 % selected answer incorrect

blank percent, in order from smallest to largest. (81.34) selected answer incorrect

(Note: If you can only compute one IRR value, you should input that amount into both answer boxes in order to obtain some credit.) (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter

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!