Question

The City of Windsor is getting frustrated with AEMI's proposed project. Nothing seems to be happening because stakeholders cannot agree on anything, and AEMI's managers in New York are not responding to the City's questions. The City's engineers and planners suggest that a benefit cost analysis for Windsor can show which project (wind or solar) will be the best from a public perspective Effects Photovoltaic Production Facilit Oil Storage/Transfer Facility Number of displaced families 2 households 35 households Annual tax revenue to the city $100,000 per year from AEMI $200,000 per year Annual tax revenue to the city 98 X $3000 per year from residents 65 X $3000 per year Additional employment at AEMI (total pay for an employee is shown) 10 jobs @$50,000 ech now;20 jobs @$55,000 each now; 5 more jobs @$25,000 in 3 years from now 10 more jobs @$35,000 in 3 years from now Additional tax revenue to the 15 X $1000 per year city because of additional employment 30 X $1100 per year $850,000 now City payout to AEMI as an incentive to build in Windsor (proportional to cost of the project) $800,000 now Additional, estimated companies attracted to Windsor because of AEMI 12 more companies in 2 years 20 more companies in 4 years from now from now Estimated 'financial credit to $300,000 paid by province in 3 $100,000 paid by province in 3 city from Green Energy Act initiatives years from now years from now, conditional if there are no reported incidences of spills or violations in emissions Assume that the life span of either project is 20 years. The discount rate, i, is 5%. You may need the following formulas. You will need a basic understanding of engineering economics Based on a benefit cost analysis, which of these two alternatives do you think the City of Windsor would like AEMI to pursue

Answer 1