Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 $39,000,000 1 59,500,000 2 14,000,000 Required:

Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows:

Year Cash Flow
0 $39,000,000
1 59,500,000
2 14,000,000
Required:
(a)

If the company requires a 9 percent return on its investments, what is the NPV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

NPV $
(b)

Compute the IRRs for this project.(Do not round intermediate calculations. Enter the positive value in the first answer box, and the negative value in the second answer box. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Internal rate of return %
Internal rate of return %

PLEASE NOTE THERE IS TWO ANSWERS IN PART B: SOMEONE ALREADY ANSWERED THIS AND THEY ANSWERED IT WRONG PLEASE HELP.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance At 40 Financial Intelligence

Authors: MOIRA O'NEILL Moira O'Neill

1st Edition

1408101114, 978-1408101117

Students also viewed these Finance questions

Question

Does it matter to policy makers how people form expectations?

Answered: 1 week ago

Question

b. Explain how you initially felt about the communication.

Answered: 1 week ago

Question

3. Identify the methods used within each of the three approaches.

Answered: 1 week ago

Question

a. When did your ancestors come to the United States?

Answered: 1 week ago