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The management of Advanced Alternative Power Inc. Is considering two capital investment projects. The estimated net cash flows from each project are as follows: begin{tabular}{ccc}

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The management of Advanced Alternative Power Inc. Is considering two capital investment projects. The estimated net cash flows from each project are as follows: \begin{tabular}{ccc} Year & Wind Turbines & BiofuelEquipment \\ \hline 1 & $280,000 & $300,000 \\ 2 & 280,000 & 300,000 \\ 3 & 280,000 & 300,000 \\ 4 & 280,000 & 300,000 \end{tabular} The wind turbines require an investment of $887,600, while the bioluel equipment requires an investment of $911,100, No residual value is expected froen either project. Present Volue of an Annuity of $1 at Compound interest \begin{tabular}{cccccc} \hline Year & 6% & 10% & 12%6 & 15% & 20% \\ \hline 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 & 7.260 & 5.145 & 5.650 & 5.019 & 4.192 \end{tabular} Required: Fresent value of acnual net cash fichs tess amoint to bo invested b. Combute a present value index for each project. If required, round your anwwers to twe decinal places. 2. Determine the internal rate of return for each project by (a) cenputing a present value factor for an annuity of $1 and (b) usine the peesent yalue of an annuity of 11 in the table above. If reauired, round your present valie factor answers to three decimal places and internal rate of ruturn to the naskect whale percent. 3. The net present value, pretsnt value index, and Unternal rate of retum all iedicate that the lywie a better financial opportunity compared to the . Wtheugh both inwestnents meet the minimum retuin criterian of 6%

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