ezto mheducation.com/hm.tpx Most Visited 6 Getting Staned El My USC Aiken-Black
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ezto mheducation.com/hm.tpx Most Visited 6 Getting Staned El My USC Aiken-Black ·The True Story of Poca. connect. BADM 363 Business Finance: Fall 2017 (ALI SECTIONS Crystal Sell Exam #4 (Chapter 8) nstructions hep Question 6 (of 30) Save & Ext Submt 6. Howell Petroleum, Inc. is trying to evaluate a generation project with the followng cash flows $42,000000 65,500,000 7,000,000 es a return o 8 per cent on its m vesmeri s what s th Nay d merrye n Dont round i nte m eciato aku at arust am you an we te-de mi place NPV Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e 9. 32.16. Enter the larger IRR in the first answer box and the smaller IRR in the second answ 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.) Intemal rate of retum Internal rale of relurn 12/2/2017Explanation / Answer
CF0 = -42,000,000
CF1 = 65,500,000
CF2 = -17,000,000
Required Rate = 8%
NPV = -42,000,000 + 65,500,000/ (1.08) - 17,000,000/ (1.08)2
NPV = 3,610,425.24
Part B
CF0 = -42,000,000
CF1 = 65,500,000
CF2 = -17,000,000
42,000,000 = 65,500,000/ (1 + r) - 17,000,000/ (1 + r)2
r = 21.43%
Only 1 IRR exists which is 21.43%
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