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Project informatio: yped AnSwers only source (wind farm). This wind farm will be located in the scenic area (has a visual impact on the communities
Project informatio: yped AnSwers only source (wind farm). This wind farm will be located in the scenic area (has a visual impact on the communities close by). Costs are estimated as follows: Construction cost =$750,000 Maintenance cost =$5,000 per year for the next 15 years Cost of dismantling at the end of 15 -year lifespan =$35,000 Compensation for view loss =$25 annually per household for 2,000 household Benefits as follows: Market value of electricity =$150,000 per year Directions: 1. Construct the table for CBA analysis 2. Calculate present value (PV) of costs and benefits using the CBA table 3. Conduct a CBA test (as difference between present value of benefits and costs) 4. Make a decision on investment (Yes/No)
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