Question: Net Present Value Method, Internal Rate of Return Method, and Analysis The management of Advanced Alternative Power Inc. is considering two capital investment projects. The


Net Present Value Method, Internal Rate of Return Method, and Analysis The management of Advanced Alternative Power Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows: Present Value of an Annuity of $1 at Required: Wind Turbines Biofuel Equipment Present value of annual net cash flows Less amount to be invested Net present value 1b. Compute a present value index for each project. If required, round your answers to two decimal places. Present Value Index Wind Turbines Biofuel Equipment places and internal rate of return to the nearest whole percent. Wind Biofuel Turbines Equipment Present value factor for an annuity of $1 Internal rate of return % % 3. The net present value, present value index, and internal rate of return all indicate that the is a better financial opportunity compared to the - although both investments meet the minimum return criterion of 10%
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