Problem 9-14 Problems with IRR [LO5]
Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows:
Year Cash Flow
0 −$38,900,000
1 $62,900,000
2 −$11,900,000
a-1.
What is the NPV for the project if the company requires a return of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a-2. Should the company accept this project?
multiple choice
No
Yes