Question

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

Year | Cash Flow | |

0 | –$ | 43,000,000 |

1 | 67,500,000 | |

2 | – | 18,000,000 |

**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.)**

NPV
$

**b.** Compute the IRRs for this project. **(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.)
**

Internal rate of return | % |

Internal rate of return |

Answer #1

a) NPV is $3,201,607

b) IRR is 22.92%

Howell Petroleum, Inc., is trying to evaluate a generation
project with the following cash flows:
Year
Cash Flow
0
–$38,000,000
1
56,000,000
2
–9,000,000
a.
If the company requires a 10 percent return 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. (A negative answer
should be indicated by a minus sign. Enter your...

Light Sweet Petroleum, Inc., is trying to evaluate a generation
project with the following cash flows:
Year
Cash Flow
0
–$
38,200,000
1
62,200,000
2
–
11,200,000
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.)
a-2
Should the company accept this project?
Yes
No
b.
This project has two IRR's, namely...

Bohrer Mining, Inc., is trying to evaluate a project with the
following cash flows:
Year
Cash Flow
0
-$38,100,000
1
62,100,000
2
-11,100,000
a-1 What is the NPV for the project if the
company requires a return of 10 percent? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
a-2 Should the firm accept this project?
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Howell Petroleum Inc is trying to evaluate a generation project
with the following cash flows:
Year Cash Flow
0
-39,000,000
1
57,000,000
2 -9,000,000
a) If the company requires a return of 10% on its investments,
should it accept this project? Why?
b) Compute the IRR for this project. How many IRR's are there?
If you apply the IRR decision rule, should you accept the project
or not? Whats going on here?
I'd like to solve this problem in excel....

light Sweet Petroleum Inc, is trying to evaluate a generation
project with the following cash flows. If the company requires a
return of 12 percent on its investments, what is the project's NPV?
what are the IRRs for the project.
Year 0 $ 46,000,000
Year 1 $ 71,000,000
Year 2 $ (15,000,000)
Required return 12%
Use a "guess" of .99 to calculate the higher IRR and -.99 to
calculate the lower IRR

Cutler Petroleum, Inc., is trying to evaluate a generation
project with the following cash flows:
Year Cash Flow
0 –$ 85,000,000
1 125,000,000
2 – 15,000,000
A. If the company requires a 10% return on its investment should
it accept this project? Why?
b.Compare the project IRR for this project. How many IRRs are
there? If you should apply the IRR division rule. Should you accept
the project or not.? What's going on here?

A project has the following cash flows:
Year
Cash Flow
0
$
72,500
1
–51,500
2
–28,000
What is the IRR for this project? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Internal rate of return
%
What is the NPV of this project if the required return is 6
percent? (A negative answer should be indicated by a minus
sign. Do not round intermediate calculations and round your...

Light Sweet Petroleum, Inc., is trying to evaluate an
exploration project with the following cash flows:
Year Cash Flow
0 -$39,000,000
1 63,000,000
2 -12,000,000
If the company requires a 12 percent return on its investments,
should it accept this project?
Yes, the IRR is below the 12% hurdle rate
No, the IRR is above the 12% hurdle rate
Cannot determine because there are multiple IRRs
Yes, the NPV is positive
No, the NPV is negative

A project that provides annual
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Requirement
1:
At a required return of 9 percent, what is the NPV of the
project? (Do not round intermediate calculations. Round
your answer to 2 decimal places (e.g.,
32.16).)
NPV
$
Requirement
2:
At a required return of 28 percent, what is the NPV of the
project? Use the IRR function. (Do not round intermediate
calculations. A negative amount should be indicated by a...

Kong Petroleum, Inc. is trying to evaluate a generator project
with the following cash flows:
Year
Cash Flow
0
-28,000,000
1
53,000,000
2
-8,000,000
If the company requires a 10% return on its investments, should
it accept this project? Why?
Compute the IRR for this project. How many IRRs are there? If
you apply the IRR decision rule, should you accept the project or
not? What’s going on here?
*Please type the calculations and answers*

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