Question: 22.please help me answer Net Present Value Method, Internal Rate of Retum Method, and Analysis for a Service Company The management of Advanced Alternative Power

22.please help me answer  22.please help me answer Net Present Value Method, Internal Rate of
Retum Method, and Analysis for a Service Company The management of Advanced
Alternative Power Inc, is considering two capital investment projects. The estimated net

Net Present Value Method, Internal Rate of Retum 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: The wind turbines require an investment of $887,600, while the biofuel equipment requires an investment of $911,100, No residual value is expected from either project. 1a. Compute the net present value for each project. Use a rate of 6% and the present value of an annuity of $1 in the table above. If required, round to the nearest dollar. 1b. Compute a present value index for each project, If required, round your answers to two decimal places, 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 whale percent. 3. The net present value, present value index, and intemal rate of return all indicate that the is/ibe a better financial opportunity compared to the , although both investmente meet the minimum rutum criterion of 6 w. Fesoback Toneci Mr work. 1a For each project muitiply the ancual ner cash flew ty the gresent vasie of an anreity facter for 4 periods at 6 W (Refor Exhibe 5 in the 1ent) Subtract ihe amount to be invested 16. Dwide the fotat present value of the net cath for by the amount fo be irvested Net Present Value Method, Internal Rate of Retum 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: The wind turbines require an investment of $887,600, while the biofuel equipment requires an investment of $911,100, No residual value is expected from either project. 1a. Compute the net present value for each project. Use a rate of 6% and the present value of an annuity of $1 in the table above. If required, round to the nearest dollar. 1b. Compute a present value index for each project, If required, round your answers to two decimal places, 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 whale percent. 3. The net present value, present value index, and intemal rate of return all indicate that the is/ibe a better financial opportunity compared to the , although both investmente meet the minimum rutum criterion of 6 w. Fesoback Toneci Mr work. 1a For each project muitiply the ancual ner cash flew ty the gresent vasie of an anreity facter for 4 periods at 6 W (Refor Exhibe 5 in the 1ent) Subtract ihe amount to be invested 16. Dwide the fotat present value of the net cath for by the amount fo be irvested

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