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	$300,000	$600,000
2	300,000	600,000
3	300,000	600,000
4	300,000	600,000

The wind turbines require an investment of $911,100, while the biofuel equipment requires an investment of $1,713,000. No residual value is expected from either project.

Year	6%	10%	12%	15%	20%
1	0.943	0.909	0.893	0.870	0.833
2	1.833	1.736	1.690	1.626	1.528
3	2.673	2.487	2.402	2.283	2.106
4	3.465	3.170	3.037	2.855	2.589
5	4.212	3.791	3.605	3.353	2.991
6	4.917	4.355	4.111	3.785	3.326
7	5.582	4.868	4.564	4.160	3.605
8	6.210	5.335	4.968	4.487	3.837
9	6.802	5.759	5.328	4.772	4.031
10	7.360	6.145	5.650	5.019	4.192

Required:

1a. Compute the net present value for each project. Use a rate of 10% and the present value of an annuity of $1 in the table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest whole dollar.

Line Item Description	Wind Turbines	Biofuel Equipment
Present value of annual net cash flows	$fill in the blank 1	$fill in the blank 2
Amount to be invested	fill in the blank 3	fill in the blank 4
Net present value	$fill in the blank 5	$fill in the blank 6

1b. Compute a present value index for each project. If required, round your answers to two decimal places.

Project	Present Value Index
Wind Turbines	fill in the blank 7
Biofuel Equipment	fill in the blank 8

2. Determine the internal rate of return for each project by (a) computing a present value factor for an annuity of $1 and (b) using the present value of an annuity of $1 in the table above. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest whole percent.

Line Item Description	Wind Turbines	Biofuel Equipment
Present value factor for an annuity of $1	fill in the blank 9	fill in the blank 10
Internal rate of return	fill in the blank 11 %	fill in the blank 12 %