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: Year Wind Turbines 1 2 3 4 Year

Net Present Value Method, Internal Rate of retum Mothod, and Analysis The management of Advanced Alternative Power Inc, is considening two copital investmant projects, The estimated net cash flows from each project are as follows: Present Value of an Annuity of \\( \\$ 1 \\) at Compound Interast The wind turbines require an investment of 5913,600 , while the biofuel equipmant requires an investrment of \\( 51,943,600 \\), No residual value is expected from aither project. Required: 1a. Compute the net present value for each project. Use a rate of \\( 10 \\mathrm{~W} \\) and the prement value of an annuty of 51 in the thblih above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest whole dollar. 1a. 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. 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 whole percent. and internal rate of return to the nearest whole percent. 3. The net present value, present value index, and internal rate of return all indicate that the opportunity compared to the is a better financi , although both investments meet the minimum return criterion of \10