1. calculate the net present value for each project.

Oil Wells Net present value $

Aluminum smelter Net present value $

I will need step by step explanation plus answer.

Problem 13-19 Canadian Metal, Mining, and Petroleum Company is analyzing two projects for possible investment. Only one investment will be made. The first project is an oil drilling project in Alberta at a cost of $500 million that will produce $100 million per year in Years 5 through 10 and $200 million per year in Years 11 through 20. The second project is an expansion of an aluminum smelter in Mapletree, Quebec, and will cost $500 million and will produce $87 million per year for Years 2 through 20. The cost of capital is 12 percent. a-1. Calculate the net present value for each project. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar. Enter your answers in whole dollars, not in millions.) Oil wells Aluminum smelter Net present value $