Question
12. Problems with IRR. Howell Petroleum , Inc., is trying to evaluate a generation project with the following cash flows: Year 0 = -$39,000,000 Year
12. Problems with IRR. Howell Petroleum , Inc., is trying to evaluate a generation project with the following cash flows:
Year 0 = -$39,000,000
Year 1 = $57,000,000
Year 2 = -9,000,000
A.If the company requires a return of 10 percent on its investments, should it accept this project? Why?
B.Compute the IRR for this project. How many IRRs are there? If you apply the IRR decision rule, should you accept the project or not? What going on here? I only need help on question B
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Restaurant Financial Management
Authors: Hyung-il Jung
1st Edition
1774631431, 978-1774631430
