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Using Pertinent Information from the Case Text

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1. Using pertinent information from the 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 time. There will be times when they produce no electricity at all. i. Many people feel that the countryside should be left untouched, without these large structures being built. The landscape should left in its natural form for everyone to enjoy. j. Wind turbines are noisy. Each one can generate the same level of noise as a family car

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