Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows: Year. 0 1 2 Cash Flow -$ 39,000,000 59,500,000 -14,000,000 a. If the company requires a return of 9 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. 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. a. NPV b. Larger IRR Smaller IRR do do % %
Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows: Year. 0 1 2 Cash Flow -$ 39,000,000 59,500,000 -14,000,000 a. If the company requires a return of 9 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. 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. a. NPV b. Larger IRR Smaller IRR do do % %
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 13P
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