Provide a detailed financial analysis of the wind turbines and an accompanying report that explains and justifies methodology, summarises findings and recommends an appropriate subsidy for local government to contribute, and highlights limitations with the analysis and recommendations. To complete this task, your manager has requested the following:
– The financial analysis is to be completed in Excel. The file is to be easily adjustable for different scenarios and all inputs must be in the one sheet called ‘Assumptions’.
– The report is to be short and written for a person with a basic understanding of financial analytical tools as the investment team will provide the report to local government and the Port of Brisbane. The report should have the following sections:
o Summary: Brief outline of task, methodology and recommendation.
o Methodology: Explains and justifies the selected evaluation metric.
o Recommendations: Summarises the economic viability of the wind turbines without the subsidy and recommends a minimum annual subsidy required to ensure the project’s economic viability. The analysis is to be completed for the project with a 20-year and 40-year life, where the 40-year life includes an overhaul of the wind turbines after 20 years.
o Limitations: Highlights the key limitations with the analysis and recommends additional analysis to alleviate these limitations where appropriate