Obj. 3 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 Biofuel Equipment 1 Nm $280,000 280,000 280,000 280,000 $300,000 300,000 300,000 300,000 4 The wind turbines require an investment of $887,600, while the biofuel equipment requires an investment of $911,100. No residual value is expected from either project. Question 1 For the wind turbines, the present value factor for an annuity of $1 (round to 3 decimal places) = $ Therefore, the internal rate of return for wind turbines project is %. Question 2 For the biofuel equipment, the net present value is $_ ---. If net present value is negative, enter the answer with parentheses (). Question 3 Considering the net present value analysis alone, the company would likely invest in the wind turbines. True False Question 4 For the wind turbines, the total present value of the annual net cash flows (6% for 4 years) is $ Question 5 For the biofuel equipment, the total present value of the annual net cash flows (6% for 4 years) is $ Question 6 The present value index (rounded to two decimal places) for wind turbines project is $ The present value index (rounded to two decimal places) for biofuel equipment project is $ Question 7 Considering the present value index analysis alone, the company would likely invest in the biofuel equipment. True False Question 8 For the wind turbines, the net present value is $ -------. If net present value is negative, enter the answer with parentheses (). Question 9 Considering the internal rate of return analysis, the company would likely invest in the biofuel equipment. True False Question 10 For the biofuel equipment, the present value factor for an annuity of $1 (round to 3 decimal places) = $ Therefore, the internal rate of return for the biofuel equipment project is %