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Net Present Value Method, Internal Rate of Return Method, and Analysis The management of Advanced Alternative Power Inc. is considering two capital investment projects.
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: Wind Turbines. Biofuel Equipment Year 1 $410,000 $860,000 2 410,000 860,000 3 410,000 860,000 410,000 860,000 Present Value of an Annuity of $1 at Compound Interest 4 Year 6% 10% 12% 15% 20% 1 0.043 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 . 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 4.917 4.355 4.111 3.784 3.326 7 5.582 4.868 4.364 4.160 3.605 " 6.210 5.335 4.968 4.487 3.837 9 0.002 5.759 5.328 4.772 4.031 10 2300 HS SAN 5019 4.197
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