eBook Net Present Value Method, Internal Rate of Return Method, and Analysis The management of Advanced Alternative Power Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows: Year Wind Turbines Biofuel Equipment $340,000 $710,000 2 340,000 710,000 W 340,000 710,000 340,000 710,000 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.352 2.991 6 4.917 4.355 4.111 3.784 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 7.360 6.145 5.650 5.019 4.192 10 The wind turbines require an investment of $1 037 580 while the hinfilel equipment requires an investment of $2 027 050 No residual value is expected from either project Previ Check My Work Save and Exit Submit Assignment ifiDegree Programs | Cor x Bb Assignments - ACC121-DGB-Spri x CengageNOWv2 | Online teachin x + v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress=true A, PR 26-4A eBook 1.ALGO la. Compute the net present value for each project. Use a rate of 10% and the present value of an annuity of $1 in the table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest whole dollar. 4.ALGO Wind Turbines Biofuel Equipment Present value of annual net cash flows 1,077,800 2,250,000 Less amount to be invested Net present value 152,380 X 1b. Compute a present value index for each project. If required, round your answers to two decimal places. Present Value Index Wind Turbines Biofuel Equipment 2. Determine the internal rate of return for each project by (a) computing a present value factor for an annuity of $1 and (b) using the present value of an annuity of $1 in the table above. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest whole percent. Wind Turbines Biofuel Equipment Present value factor for an annuity of $1 Internal rate of return 10.02 X % 10.05 X % 3. The net present value, present value index, and internal rate of return all indicate that the biofuel equipment is a better financial opportunity compared to the wind turbines V , although both investments meet the minimum return criterion of 10%. Feedback Previous Check My Work ess: 2/2 items Save and Exit Submit Assignment for Gradi ent Score: 60.71% any