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

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Finance

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

Year. Cash Flow

0 -38,000,000

1 62,800,000

2 -11,800,000

a-1. What is the NPV for the project if the company requires a return of 12 percent? ( Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV ________

a-2. Should the firm accept this project?

Yes

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 smaller 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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