Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows: Year 0 1 2 Cash Flow -$ 38,000,000 62,000,000 -11,000,000 a-1. What is the NPV for the project if the company requires a return of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV
Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows: Year 0 1 2 Cash Flow -$ 38,000,000 62,000,000 -11,000,000 a-1. What is the NPV for the project if the company requires a return of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Howell Petroleum, Incorporated, is trying to evaluate a generation project with the
following cash flows:
Year
0
1
2
a-1. What is the NPV for the project if the company requires a return of 11 percent? (Do
not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.)
NPV
Cash Flow
-$ 38,000,000
62,000,000
-11,000,000
a-
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.)
This project has two IRR's, namely
percent and
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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