...assumptions stated below the payback of the Jiminy Nick wind turbine with a cost of about $3.3 million would return the investment in about four years time. Net present value summarizes the initial cost of an investment, the estimated annual cash flows, and expected salvage value, taking into account the time value of money (1). A NPV calculation for the scenario SED is reviewing equals $7,697,286 minus the investment costs of $3,318,000 totaling $4,379,286. The capital budgeting analysis reflects the assumptions stated in the case scenario that the initial investment cost and installation of the wind turbine is $3,900,000 and there is a grant available from the Renewable Energy Trust Fund in the amount of $582,000. A bank loan of $3,300,000 at 7.3% will be obtained leaving an $18,000 difference. The turbine will follow MACRS double-declining balance depreciation schedule for a period of five years including half-year depreciation in the first and last recovery years. Jiminy Peak has an income tax rate of 40%. The company has sufficient taxable income to benefit from any deductions and credits available, and the after-tax weighted average cost of capital of 6%. The turbine’s useful life is 25 years with no terminal disposal value. There will be $100,000 net cash inflow from extended operations and it is referring to after-tax profit, and the $75,000 cost and $166,667 RECs will continue at that level for the remaining years of the wind turbine’s life cycle. The cash flows for...
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...case text, prepare a capital budgeting analysis of the wind turbine project using the payback and net present value or internal rate of return models. a. 2. Identify and evaluate the environmental advantages of the wind turbine project. b. Wind energy is friendly to the surrounding environment, as no fossil fuels are burnt to generate electricity from wind energy. c. Wind turbines take up less space than the average power station. Windmills only have to occupy a few square meters for the base, this allows the land around the turbine to be used for many purposes, for example agriculture. d. Newer technologies are making the extraction of wind energy much more efficient. The wind is free, and we are able to cash in on this free source of energy. e. Wind turbines are a great resource to generate energy in remote locations, such as mountain communities and remote countryside. Wind turbines can be a range of different sizes in order to support varying population levels. f. Another advantage of wind energy is that when combined with solar electricity, this energy source is great for developed and developing countries to provide a steady, reliable supply of electricity. g. 3. Identify and evaluate the environmental disadvantages of the wind turbine project. h. The strength of the wind is not constant and it varies from zero to storm force. This means that wind turbines do not produce the same amount of electricity all the...
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...Management report for Jiminy Peak 1. Executive Summary * Key issue facing Jiminy Peak Jiminy Peak exists a very high energy costs and consumption every year because it spends a lot of electricity to run its business. * Main finding from analysis of Jiminy Peak’s energy costs The company use machines to manufacture snow, which consume 7.5 million kilowatt hours of electricity each year. The managers of the company realize that they need to employ wind power to produce electricity, which is a renewable green resource readily available to the mountain resort. The use of wind energy needs an investment at the beginning, and the wind turbines would produce aesthetic issues and noise pollution. However, the project can recover the cost within 7 years and produce a long-term cash inflow. In addition, the wind energy is sustainable, and it can reduce the consumption of fossil fuel and air pollution. Finally, the project is helpful for the local economy and residents. * Recommendation for Jiminy peak The company should invest the project, which is profitable for the company and friendly for the environment and social. 2. Introduction Jiminy Peak consumes 7.5 million kWh of electricity each year because its business is very energy-intensive. The managers of the company decide to employ wind turbine to produce electricity. The project needs a large investment to purchase and install turbines, and it also produces aesthetic issue and noise pollution...
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...1. Two commonly used methods of financial analysis are payback and present value. 2. Payback determines the length of time for an investment to return its original cost 3. (1). Using the assumptions stated below the payback of the Jiminy Nick wind turbine with a cost of about $3.3 million would return the investment in about four years time. 4. Net present value summarizes the initial cost of an investment, the estimated annual cash flows, and expected salvage value, taking into account the time value of money a. (1). A NPV calculation for the scenario SED is reviewing equals $7,697,286 minus the investment costs of $3,318,000 totaling $4,379,286. b. The capital budgeting analysis reflects the assumptions stated in the case scenario that the initial investment cost and installation of the wind turbine is $3,900,000 and there is a grant available from the Renewable Energy Trust Fund in the amount of $582,000. c. A bank loan of $3,300,000 at 7.3% will be obtained leaving an $18,000 difference. d. The turbine will follow MACRS double-declining balance depreciation schedule for a period of five years including half-year depreciation in the first and last recovery years. Jiminy Peak has an income tax rate of 40%. e. The company has sufficient taxable income to benefit from any deductions and credits available, and the after-tax weighted average cost of capital of 6%. f. The turbine’s useful life is 25 years with no...
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...ski resort, Jiminy Peak resort has to consume a lot of electricity power for snowmaking every year. The main question now is how to reduce the high cost of electricity. Among the many solutions, the wind turbine project reduces electricity costs, while also taking into account environmental issues. This is because the wind is a renewable green energy. The wind turbine project is through the installation of wind turbine to provide electrical energy and save electricity costs. Winter is not only the most productive season for tourists, but also the season with the largest amount of wind in a year. Therefore, even if there is a substantial increase in power demand in winter, wind turbine can provide enough electricity for resort operation. However, even so, the wind turbine project still has other drawbacks, such as transporting turbine installation material will wake the residents living around, excess electricity cannot be stored, and so on. Introduction In this report, the proposal of the wind turbine will be examined from several aspects, which include the capital budgeting, disadvantages and benefits of the proposal, and strategies that are used to solve problems. Disadvantage and benefits Before the implementation of the wind turbine project, a number of specific issues have to be considered, which are the impacts of environmental and social issues affecting the firm. First, the social impact is mainly the impact on the residents living nearby. The wind turbine is very high...
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...maStuff My Stocking M/M Romance Stories that are Nice and… Naughty Stuff My Stocking: M/M Romance Stories that are Nice and… Naughty An M/M Romance Group Publication copyright 2010 With stories by: M.J. O'Shea Brian Jackson Deanna Wadsworth Missy Welsh Jade Archer Michael S. Xara X. Xanakas Mark Alders Em Woods Rachel Haimowitz SJD Peterson Kari Gregg Kim Dare A.J. Llewellyn Serena Yates Ocotillo Jessica Freely Heinrich Xin William Cooper Wren Boudreau Selah March Sarah Madison Stephani Hecht Amy Lane Angela Benedetti edited by: Diane W. (mailto:diane.goodreads@gmail.com) Jason B. Kathy H. Stuff My Stocking: M/M Romance Stories that are Nice and… Naughty What you’ve gotten yourself into… The stories you are about to read are the product of a very special project sponsored by the Goodreads M/M Romance groupthe online community for readers who love to read about men in love (Male/Male). The group moderators issued an invitation for members to choose a photo and pen a Letter to Santa asking for a short M/M romance story inspired by the image; authors from the group were encouraged to select a letter and write an original tale. The result was an outpouring of creativity that shined a spotlight on the special bond between M/M romance writers and the people who love what they do. This book is an anthology of those letters and stories. Whether you are an avid M/M romance reader or new to the genre, you are in for a delicious treat. So sit back, relax and enjoy...
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