The management of Advanced Alternative Power Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows: The wind turbines require an investment of $887,600, while the bio fuel equipment requires an investment of $911,100. No residual value is expected from either project. 1. Compute the following for each project: a. The net present value. Use a rate of 6% and the present value of an annuity of $1 table appearing in this chapter (Exhibit 5). b. A present value index. Round 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 table appearing in this chapter (Exhibit 5). 3. What advantage does the internal rate of return method have over the net present value method in comparing projects? View Solution:

The management of Advanced Alternative Power Inc is considering two

## armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...