As the owner of a large industrial farm, you have been considering for some time

installing a Wind Turbine Generator (WTG) on your property and have created a

Saving Account to put aside at least part of the cost. You now want to make a

budgetary estimate of the financial commitment, based on the following data:

Size of the desired WTG 3MW

Price of a 1MW WTG 5 years ago $1,500,000

Power sizing factor for WTG of this size 0.65

Price Index: 5 years ago was 420, now is 650

Your Saving Account: created 5 years ago, at an APR of 8%, with monthly

deposits of $40,000, and made 60 deposits.

You have decided to proceed with the purchase of the 3 MW WTG and finance

the balance between the amount you have in your Saving Account and the

price of the new WTG. Your Lending Institution has offered you the following

conditions:

APR of 5.35%

Repayment in five years of monthly payments