Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year 0 1 2 Cash Flow -$38,000,000 57,500,000 -13,000,000 a. If the company requires a return of 11 percent on its investments, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Compute the IRRs for this project. (Do not round intermediate calculations and enter
Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year 0 1 2 Cash Flow -$38,000,000 57,500,000 -13,000,000 a. If the company requires a return of 11 percent on its investments, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Compute the IRRs for this project. (Do not round intermediate calculations and enter
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 22E
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