Net Present Value Method, Internal Rate of Return Method, and Analysis for a Service Company The management of Advanced Alternative Power Inc. is considering two capital investment projects. The estimated net cash flows from each project ates follows: Year 1 Wind Turbines $230,000 230,000 230,000 230,000 Biofuel Equipment $460,000 460,000 460,000 460,000 2 3 4 The wind turbines require an investment of 5656,650, while the biofuel equipment requires an investment of $1,190,940. No residual value is expected from either project Present Value of an Annuity of $1 at Compound Interest 10% 15% Year 6% 12% 20% 1 0.943 0,893 0.870 0.833 0.909 1.736 2 1 833 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 2.855 3,037 3.605 2.589 2.991 5 4,212 3.791 3.353 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.160 3.605 4.564 4.968 8 6.210 5.335 4.487 3.837 9 6 802 5.759 5328 4.772 4.031 9 6.802 5.759 4.722 4,031 5328 5.650 10 7.360 6.145 5.019 4.192 Required: la. Compute the net present value for each project. Use a rate of 10% and the present value at 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 Wind Turbines Biofuel Equipment Present value of annual net cash flows Less amount to be invested Net present value 1b. Computea 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 S1 and (b) using the present value of an annuity of 51 in the table above. If required, round your present value foctor 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 St Internal rate of return 3. The net present value, present value index, and internal rate of return all indicate that the e is/are a better financial opportunity compared to the although both investments meet the minimum return criterion of 10% Next