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:

YearWind TurbinesBiofuel Equipment$1$$$320,000$$$580,0002320,000580,0003320,000580,0004320,000580,000$

The wind turbines require an investment of $$913,600,$ while the biofuel equipment requires an investment of $$1,501,620.$ No residual value is expected from either project.

Present Value of an Annuity of $$1$ at Compound InterestYear$6\%10\%12\%15\%20\%10\mathrm{.}9430\mathrm{.}9090\mathrm{.}8930\mathrm{.}8700\mathrm{.}83321\mathrm{.}8331\mathrm{.}7361\mathrm{.}6901\mathrm{.}6261\mathrm{.}52832\mathrm{.}6732\mathrm{.}4872\mathrm{.}4022\mathrm{.}2832\mathrm{.}10643\mathrm{.}4653\mathrm{.}1703\mathrm{.}0372\mathrm{.}8552\mathrm{.}58954\mathrm{.}2123\mathrm{.}7913\mathrm{.}6053\mathrm{.}3532\mathrm{.}99164\mathrm{.}9174\mathrm{.}3554\mathrm{.}1113\mathrm{.}7853\mathrm{.}32675\mathrm{.}5824\mathrm{.}8684\mathrm{.}5644\mathrm{.}1603\mathrm{.}60586\mathrm{.}2105\mathrm{.}3354\mathrm{.}9684\mathrm{.}4873\mathrm{.}83796\mathrm{.}8025\mathrm{.}7595\mathrm{.}3284\mathrm{.}7724\mathrm{.}031107\mathrm{.}3606\mathrm{.}1455\mathrm{.}6505\mathrm{.}0194\mathrm{.}192$

Required:

$1$a$.$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 sign to indicate a negative net present value. If required, round to the nearest whole dollar.

Line Item DescriptionWind TurbinesBiofuel EquipmentPresent value of annual net cash flows$fill in the blank $1$$fill in the blank $2$Amount to be investedfill in the blank $3$fill in the blank $4$Net present value$fill in the blank $5$$fill in the blank $6$

$1$b$.$ Compute a present value index for each project. If required, round your answers to two decimal places.

ProjectPresent Value IndexWind Turbinesfill in the blank $7$Biofuel Equipmentfill in the blank $8$

$2.$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 whole percent.

Line Item DescriptionWind TurbinesBiofuel EquipmentPresent value factor for an annuity of $$1$fill in the blank $9$fill in the blank $10$Internal rate of return$$fill in the blank $11\%$fill in the blank $12\%$