Wet Present Value Method Internal Rate of Return Method, and Analysis for a Service Company The management of Advanced Alternative Power Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows: Wind Biofuel Year Turbines Equipment 1 $320,000 2 320,000 320,000 320,000 $670,000 670,000 670,000 570,000 4 The wind turbines require an investment of $825.480, while the biofuel equipment requires an investment of 51.912.450. Norsunl value is expected from the project Present Value of an Annuity of 51 at Compound Interest Year 66 104 12 159 207 1 0.943 0.900 0.093 0.70 0.133 3 1.833 1.736 1.640 1.52 2.673 2.487 2.402 2.23 2.106 3.170 3.037 2.655 5 4,212 3.791 3.605 3:353 2.991 6 4.917 4.355 4111 1.785 3:26 7 5582 4.564 4.160 3.605 6,210 5.335 4.568 4.48 3.837 6.802 5.759 5328 4.772 4,031 10 7.360 5.650 5.019 4.192 Required: 1. 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 sinto a negative ne presente reured, round to the nearest whole dollar Check My Work All work saved Sowet Suomen 5.582 4 4160 3.60 210 5.335 4.42 18 5328 4.772 4031 10 7.360 6145 5.650 5019 4.192 Required: ta. Compute the net present for each project. Use rate of 10% and the protein of in the table bove. If red, the sono indicative ne pre required, and to the heart whole dollar Wind Turbines Biofuel Equipment Present valin of cash flows samount to be invested out wesent value 11. Corte a present vilde for each project. It reged, round your answers to two decimal places Present Value Index Wind Turbines Pole Equipment 2. Determine the internal rate of return for each project by (a) computing a present value factor for any of 51 and (b) using the present value of any of in the bove. If required, round your present value factor answers to three decimal places and internal rate of retum to the nearest while percent Wind Turbines Biofuel Equipment Presint value factor for an annuity of $1 Internal rate of return 96 3. The net present value present value index, and internal rate of return all indicate that the are a better ancial opportunity compared to the although botti vestments meet the minimum return trio of 10%