INVESTMENT FOR A WINDMILL

Investment for a Windmill

Investment for a Windmill

The company is considering installing a Windmill V82 (1.65 MW) or another turbine of similar size. This paper calculates the costs and benefits of the proposed turbine and determines the discounted net present value (NPV). To calculate the costs and benefits a nine-step cost-benefit analysis (CBA) process is used.

There are a number of ways to measure costs and benefits. Some scholars have suggested three approaches to the cost-benefit questions in the context of education: net present-value index (NPV), internal rate of return (IROR), and benefit-cost ratio (Johnson, Solomon, 2010).

The NPV ...