Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Howell Petroleum, Inc

Howell Petroleum, Inc

Finance

Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows:

 

Year Cash Flow

0 -$ 40,000,000

  1 64,000,000

  2 - 13,000,000

 

 

  

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.)

 

     

 

a-2.

Should the firm accept this project?

 

   

  •  

No

  •  

Yes

  

 

b. This project has two IRRs, 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.) 

(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.)

 

Option 1

Low Cost Option
Download this past answer in few clicks

2.94 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE