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I can calculate the second IRR value. Can you please explain how you calculate it? Howell Petroleum, Inc., is trying to evaluate a generation project
I can calculate the second IRR value. Can you please explain how you calculate it?
Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0 38,700,000 1 62,700,000 2 - 11,700,000 a-1. What is the NPV for the project if the company requires a return of 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ 8,630,578.51 a- & Should the firm accept this project? 2. No Yes b. (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.) This project has two IRR's, namely -78.12 percent and 1 percent, in order from smallest to largest. (Note: If you can only compute one IRR value, you should input that amount into both answer boxes in order to obtain some credit.)Step by Step Solution
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