2: Time Value of Money 2.1. Your company is investigating the possibility of erecting a wind farm in the Western Cape by borrowing the capital amount from the bank. The details follow: Capacity of wind farm: 6 000 kW Capital cost: R21 000 000 Life of wind farm: 10 years What is the monthly instalment that your company will have to pay during the life of the wind farm to the Bank to settle the loan? The annual interest rate is 15%. (5) 2 2.2. More people are experiencing the effects of global warming and climate change and fewer have doubts about it. A number of persons are expecting a transition to a low- carbon economy where solar, wind farms, battery electric vehicles (BEVS) and fuel cell electric vehicles (EVs) are regarded as alternatives to fossil fuel-based energy and transportation. However, such infrastructure is mineral and metal intensive, and additional minerals may be used to a larger extend than before. Lithium, cobalt, nickel, and manganese are important for the manufacturing of batteries used in EVs. According to Seddon (2019) Argus expects the demand for lithium to increase 5-fold from 60 000 tonnes in 2018 to 270 000 tonnes by 2030. This and predictions for nickel and cobalt are summarised in the table below. (9)