Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows:...
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Finance
Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows:
Year. Cash Flow
0 -38,000,000
1 62,800,000
2 -11,800,000
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.)
NPV ________
a-2. Should the firm accept this project?
Yes
No
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 smaller 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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