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1. Your firm is considering an investment in a wind farm. Assume that the farm will cost $1 million per MW of installed capacity. The plan under consideration would deploy 10 GE 1.5 MW. You are to assess the after-tax profitability of this plan. The wind farm will be placed in a Class 6 wind area, generating an estimated average of 8760 MWh per turbine per year. The price of energy produced is $0.067 per kwh and a production tax credit provide an additional $0.022 per kwh for the first 10 years. You can obtain a very low interest loan for your investment, with an effective interest rate of 2.5% that you will pay off over 30 years. Assume that transmission lines will be provided by a local utility at no cost. Operating expenditures are $10,000 per year, mostly for insurance and occasional maintenance. Your corporate tax rate is 30%. Discount real profits or losses at a rate of 10%. For the three options below, generate an annual nominal cash flow, annual before tax profits, annual after-tax profits, and net present value after tax of the windfarm for the first 20 years (using traditional NPV calculations-do not worry about WACC), assuming zero salvage value and that you have no other deductions or credits for taxation except interest and: 1. The wind turbines can be straight-line depreciated over 15 years. 2. The wind turbines can be MACRS depreciated at 300% declining balance over 6 years, switching to straight-line depreciation on the adjusted basis (as in 4) if ever that provides a greater deduction. 3. The wind turbines can be depreciated 100% in the first year. Is the wind farm profitable in NPV terms under any of these scenarios after 20 years? Which depreciation method is preferable? Why?
While patrolling for illegal border crossings and drug dealers, agents of the U.S. Border Patrol spotted 15 to 20 people being loaded into a van at the rear entrance to a restauran
what do you understand by line balancing?what happens if balance does not exist?
Which of Kotter's 8 steps are critical to sustaining change? (You can list multiple steps.) Why do some change leaders fail to properly address sustaining change?
Explain the topic of joint versus separate preference reversal.
Examine two issues of standardization and localization in general for MNEs. Determine two ways in which an organization would benefit from standardization of IHRM activities and tw
An Electric Company estimates its demand trend line (in millions of kilowatt hours) to be D = 79 + 0.52 Q, where Q refers to the sequential quarter number and Q=1 for winter 2000.
The purpose of the project is to evaluate the performance of a bank holding company of your choice. 1. Choose a bank holding company. You can choose from Top 50 BHCs or find a b
In using the Ethical Decision-Making Framework, a firm should consider the impact of its actions on groups such as its employees, retirees, suppliers, customers, and even the commu
process flow and layout flows are at the core of lean manufacturing, do you agree or disagree?
1) How do effective managers assess performance and what is the role and process of the Behaviourally Anchored Rating Scale (BARS)? 2) How is the critical incident technique used t
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