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Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: YEAR Cash Flow 0 -$36,000,000 1 $53,500,00 2 -$11,000,000 Required:
Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: YEAR Cash Flow 0 -$36,000,000 1 $53,500,00 2 -$11,000,000 Required: (a) If the company requires a 12 percent return on its investments, what is the NPV of the project? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places NPV $??? (b)Compute the IRR for this project. (Do not include the percent signs (%). Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations. Enter the positive value in the first answers box, and the negative value in the next answer box. Round your answers to 2 decimal places. Internal rate of return ???% Internal rate of return ???%
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