Problem 5-13
Subject:BusinessPrice: Bought3
Problem 5-13. Problems with IRR 1.
Howell Petroleum, Inc., is trying to evaluate a generation project with the following cash flows:
Year Cash Flow
0 - $39,200,000
1 - 3,200,000
2 - 12,200,000
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.)
NPV - ?
2. Should the firm accept this project?
No or Yes
