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Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Cash Flow Year 0 = 52,000,000 Year 1 = 74,000,000
Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Cash Flow Year 0 = 52,000,000
Year 1 = 74,000,000
Year 2 = -12,000,000
a. If the company requires a return of 12 percent on its investments, should it accept this project? b. Compute the IRR for this project. How many IRRs are there? Using the IRR deci-sion rule, should the company accept the project? Whats going on here?
*Please answer the full question.
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