Ranger Corporation has decided to invest in renewable energy sources to meet part of its energy needs for production. It is considering solar power versus wind power. After considering cost savings as well as incremental revenues from selling excess electricity into the power grid, it has determined the following:

SolarWindPresent value of annual cash flows$52,580$128,450Initial investment$39,500$105,300

Determine the following:

1. Net present value

2. Profitability index

Based on your analysis above, which project should the company choose and why?