All parts correct especially which is wrong do that carefully please

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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All parts correct especially which is wrong do that carefully please

Howell Petroleum, Incorporated, is trying to evaluate a generation project with the
following cash flows:
Year
0
1
2
a-
2
a-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.)
NPV
Cash Flow
-$ 38,500,000
62.500,000
-11,500,000
Answer is complete and correct.
$
8,135,841.84
Should the firm accept this project?
Yes
O No
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.)
> Answer is complete but not entirely correct.
This project has two IRR's,
12.00
percent and
41.19
namely
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.)
Transcribed Image Text:Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows: Year 0 1 2 a- 2 a-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.) NPV Cash Flow -$ 38,500,000 62.500,000 -11,500,000 Answer is complete and correct. $ 8,135,841.84 Should the firm accept this project? Yes O No 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.) > Answer is complete but not entirely correct. This project has two IRR's, 12.00 percent and 41.19 namely 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.)
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