Net Present Value Method, Internal Rate of Return Method, and Analysis for a Service Company The management of Advanced Alternative Power Inc. is considering the capital investment projects. The estimated net cash flows from each project are as follows: Wind Biofuel Year Turbines Equipment 1 $430,000 $320,000 2 430,000 820,000 3 430,000 820,000 430,000 820,000 The wind turbines require an investment of $1,227,650, while the biofuel equipment requires an investment of $2,122.980. No residual value is expected from either project 0.89) Present Value of an Annuity of Sl at Compound Interest Year 64 10% 12% 15% 20% 1 0.943 0.909 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 2155 2.59 5 4.212 3.791 3.605 3353 2.991 5 4.917 4 155 4.111 3.785 3.326 5.582 4.368 4564 4.160 3,605 6.210 S 4.457 3.837 9 6302 5.759 4.772 4,033 10 7.560 0.145 5.650 5.019 4192 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.272 4.031 10 7.360 6.145 5,650 5.019 4.192 Required: 1a. Compute the net present value for each project. Use a rate of 10% and the present value of an annuty of S1 in the table above. If required, use the minus sign to indicate a negative net present value. It required, round to the nearest whole collar, Wind Turbines Biofuel Equipment Present value of annual net cash flows Less amount to be invested Net present value 1b. Compute a present value inde 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 any 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 3. The net present value present value index, and internal rate of return al indicate that the s/are a better financial opportunity compared to the although both investments meet the minimum returnerion of 10%