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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
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: The wind turbines require an investment of $595,470, while the biofuel equipment requires an investment of $1,313,300. No residual value is expected from either project. Present Value of an Annuitv of $1 at Comoound Interest Required: whole dollar. 1b. Compute a present value index for each project. If required, round your answers to two decimal places. to three decimal places and internal rate of return to the nearest whole percent. 3. The net present value, present value index, and internal rate of return all indicate that the return criterion of 10%. is/are a better financial opportunity compared to the although both investments meet the minimum
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