Question
The management of advanced alternative power inc is considering 2 capital investment projects. The estimated net cash flows from each of the project are as
The management of advanced alternative power inc is considering 2 capital investment projects. The estimated net cash flows from each of the project are as follows the wind turbines require an investment of 942150. While the buy fuel equipment requires an investment of 1791 830 no residual value is expected from either project. Commute the net present value for each project use a rate of 10% in the present value of an annuity of $1. Compute a present value index for each project and the number two determine the internal rate of return for each project by communing the present present value factor for new to d f one using
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