Question
Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 $ 38,500,000 1 58,500,000 2 13,500,000
Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows:
Year | Cash Flow |
---|---|
0 | $ 38,500,000 |
1 | 58,500,000 |
2 | 13,500,000 |
A) If the company requires a return of 12 percent on its investments, what is the NPV of the project?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
B) Compute the IRRs for this project. (Larger IRR and Smaller IRR)
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Enter the larger IRR in the first answer box and the smaller IRR in the second answer box. If you can only calculate one IRR, enter it in both boxes to receive partial credit. A negative answer should have a minus sign.
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