Present Value of Costs The Aubey Coffee Company is evaluating the within-plant distribution system for its new roasting, grinding, and packing plant. The two alternatives are (1) a conveyor system with a high initial cost but low annual operating costs and (2) several forklift trucks, which cost less but have considerably higher operating costs. The decision to construct the plant has already been made, and the choice here will have no effect on the overall revenues of the project. The cost of capital for the plant is 11%, and the projects' expected net costs are listed in the following table: Expected Net Cost Year Conveyor Forklift 1 2 3 4 5 $500,000 $200,000 -120,000 -160,000 -120,000 -160,000 .120,000 -160,000 120,000 160,000 -20,000 -160,000 a. What is the IRR of each alternative? The IRR of alternative 1 is-Select- The IRR of alternative 2 is -Select- b. What is the present value of costs of each alternative? Do not round intermediate calculations. Round your answers to the nearest dollar. Use a minus sign to enter negative values, if any. Alternative 1: $ Alternative 2: $ Which method should be chosen? -Select- should be chosen. Present Value of Costs The Aubey Coffee Company is evaluating the within-plant distribution system for its new roasting, grinding, and packing plant. The two alternatives are (1) a conveyor system with a high initial cost but low annual operating costs and (2) several forklift trucks, which cost less but have considerably higher operating costs. The decision to construct the plant has already been made, and the choice here will have no effect on the overall revenues of the project. The cost of capital for the plant is 11%, and the projects' expected net costs are listed in the following table: Expec Year Convey -Select- 1 2 $500,00 undefined -120,00 9% - 120,00 - 120,00 11% -120,00 -20,00 13% a. What is the IRR of each alternat. The IRR of alternative 1 is-Select- The IRR of alternative 2 is-Select- b. What is the present value of costs of each alternative? Do not round intermediate calculations. Round your answers to the nearest dollar. Use a minus sign to enter negative values, if any. Alternative 1: $ Alternative 2: $ Which method should be chosen? Select should be chosen The IRR of alternative 2 is-Select of each alternative? Do not round Intermediate calculations. Round your answers to the nearest dollar. Use a minus sign to -Select- IRR method PV method Select should be chosen