net present value method, internal rate of method and anlysis for a serivice company

Net 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: Biofuel Year Wind Turbines Equipment $280,000 $300,000 200,000 300,000 200,000 300,000 280,000 300,000 The wind turbines require an investment of 5807,600, while the biofuel equipment requires an investment of $911,100. No residual value is expected from either project. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 2 3 0.93 1500 0533 1.520 1.830 2673 3.465 2.402 1.735 2.487 3.170 3.791 0.870 1.625 2.283 2.855 3.353 3.75 2.509 2.991 4.358 5.335 4.564 6.210 3.605 10 7.00 5.145 5.650 4.772 5.019 4031 4192 for each project. Use a rate of Wind Turbines cashows 970,230 X and the great Biofuel Equipment an y Prest of 51 in the table above. If required, round to the nearest dollar o 2.060,500 X -687.600 -911,100 107 .360 6.145 5.6505 .019 4192 Required: ia. Comote the represent was for each proct. Use a role of 66 and the punt valet an annuity of si in the table above If required, round to the nearest dollar Wind Turbines Biofuel Equipment Present value of net cash flows $ 970,230 X 5 2,010,500X es t to be invested -887,000 $11,100 Net present value 2,630 X $ 204,750 X 15. Compute a presente index for each project. If required, round your answers to two decimal places Present Value Index 1.09 114 2. Determine the incom e of return for each project by (o) computing present value factor for an annuity of $1 and (b) three decals and internal rate of return to the whole percent Wind Turbines Biofuel Equipment Post value factor for any of 51 2.589 X 2.855 X 12 X 13 X The rest va n de and internal rate of nature that the biofuel equipment annuity of $1 in the table above. If required, round your present value a better financial opportunity compared to the wind turbines although both investments meet th by the cor r W ithin