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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?
What are organizational and personal decisions? A way makes organizational decisions in the capacity of a company officer. These decisions reflect the fundamental policy of the
Microsoft Project, identify the resource that caught your interest and estimate its usefulness to the project management profession.
explain the concept and practice of corporate social responsibility (CSR).
What does the project portfolio illustrate? How might it be useful to management?
What do your contingency plan in case your plan of action doesn't work?
Identifying Opportunities Select a company described in the Wall Street Journal, Fortune, Forbes, or another reputable business application. Visit the company%u2019s Web site to
You are the project manager for a new multi-million dollar building renovation for your organization. The company needs to maximize the space that they have and the best approach i
In 2007, the Cartoon Network was fined for public disruption of the Bostonian transportation system while using a new form of public relations called: Answer > Guerilla advertising
Unconscionability is an import UCC concept. What is it and how does it help the consumer? Illustrate your answer with examples
1. as the amount of on hand inventory increases, A. shortage cost increase and carrying costs increase B. Shortage cost decrease and carrying costs increase C. both shorta
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