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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. The
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: Year Wind Turbines 1 2 3 4 Year 1 Present Value of an Annuity of $1 at Compound Interest 12% 20% 2 3 4 5 6 7 80 $350,000 350,000 350,000 350,000 9 6% 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 Biofuel Equipment 6.802 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 $700,000 700,000 700,000 700,000 5.759 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 15% 0.870 1.626 2.283 2.855 3.352 3.784 4.160 4.487 4.772 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4 ?
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