Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows: Year 0 1 2 Cash Flow -$ 44,000,000 69,500,000 -19,000,000 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 % %

Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows: Year 0 1 2 Cash Flow -$ 44,000,000 69,500,000 -19,000,000 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 % %

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 4EA: Assume a company is going to make an investment of $450,000 in a machine and the following are the...

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