Net Present Value Method, Internal Rate of Return Method, and Analysis The management of Advanced Alternative Power Inc. is considering the capital investment projects. The estimated net cash flows from sach project are as follows: Ycar Wind Turbines Blofuel Equipment 1 2 2 330,000 3 330,000 330,000 40,000 690,000 690,000 4 Present Value of an Annuity of S1 at Compound Interest Year 69 1096 12% 15% 20% 2 0.943 0.909 0.393 0.870 0.833 2 1.833 1.736 2.390 1.529 3 2.673 2.187 2.102 2.283 2.100 1.026 3.170 3.037 2.833 2.589 5 3.165 4.212 4.017 3.701 3.505 3.352 2.001 6 4.355 3.784 3.326 5.582 4.868 4.564 4.160 3.60S 8 6.210 5.335 4.95 4.487 3.837 o 5.802 5.750 5.328 4.772 4.031 10 6.145 5.019 4.192 The wind turbines recuire an investment of $942.150, wiile the bel equiment requires an investment of $2,095,530. residual value is expected from the project. Required: la 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 Wind Turbines Rinfirl fputinument Les amount to be invested Net present value 11. Compute a present value inde for each project. If required, round your answers to two decimal places. Present Value Index Wind Turbindo Blotuel Equipment 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. Wind Turbines Bio Equipment Present value factor for any of $1 Internal sleuf return 3. The net present valus, present value index, and internal rate of retum all indicate that the la botter financial opportunity compared to the although both investments meet the minimum return criterion of 1096