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Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 -$38,500,000 1 62,500,000 2 -$11,500,000 1.

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

Year Cash Flow
0 -$38,500,000
1 62,500,000
2 -$11,500,000

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.

2. Should the firm accept this project?
  • No

  • Yes

3.

This project has two IRR's namely _______ % & _________%, in order from smallest to largest. (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.)

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