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 are as follows: Wind Turbines Year $220,000 220,000 220,000 220,000 Biofuel Equipment $420,000 420,000 420,000 420,000 The wind turbines require an investment of $569,580, while the biofuel equipment requires an investment of $1,199,100. No residual value is expected from either project Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 4.212 3.791 3.605 3.353 2.991 4.917 4.355 4.111 3.785 3.326 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 7.360 6.145 5.650 5.019 4.192 Required: the table above frecuired, use the minus sign to indicate a negative not present value. If required 1a. Compute the net present value for each project. Use a rate of 104 and the rent value of an annuity of Pound to the nearest whole dollar Wind Turbines Biofuel Equipment Present value of annual techos Les amount to be het presente 1b. Computea rent value index for each proc. If requred, round your answers to we decimal Present Value Index Wind Turbines Biofuel fumet t y and the press the n your present 2. Duh e t value factor answers to redemplaces and by a computing a pret to return to the newest where Wind Turbines Biofuel Equipment Present value factor for an y of $1 Internal rate of return Ware a better financial opportunity compared to the bowel ment although both 3. The net present value present value index, and internal rate of return all indicate that the wind turbines investments meet the return criterion of 10