Compute the irr for this project how many irrs are there if


Question: Problems with IRR. 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 percent on its investments, should it accept this project? Why?

b. 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?

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Finance Basics: Compute the irr for this project how many irrs are there if
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