п»їMemorandum

To: Brian Fairbank, CEO of Jimmy Peak Huge batch Resort

From: John Marshall, Project Leads of Lasting Energy Improvements Date: November 21, 2013

Subject: GENERAL ELECTRIC Wind Turbine Economical Feasibility

The financial feasibility of purchasing the GE Wind Turbine is very sensitive to whether or not Jimmy Peak gets the funds and tax credits which might be expected. Another factor that is certainly important to the sensitivity from the projects economical feasibility is definitely the expected. The expectations of those important factors decide the financial favorability with the GE Wind Turbine project. Whenever we assume that the MTC funds will be offered and the taxes credits may be taken, the projects monetary outcome can be favorable. Assuming that the electricity costs will be over $0. 10 per kWh the economic outcome can be expected to produce a great net present value. This scenario seems to be the most likely since SED would not foresee virtually any reason why the grants and tax credit would not be accessible to Jimmy Peak. Whenever we assume that the MTC funds and duty credits will not be available for the GE Wind generator project, the financial result appears to be unfavorable. The scholarships and duty credits help make the task favorable while the scholarships greatly reduce Jimmy Peak's investment in the project, while the tax credits provide an annual direct benefit to the amount owed to get taxes. It truly is our advice that Jimmy Peak Huge batch Resort should certainly pursue the GE Wind generator project based on the supposition that the funds and duty credits will probably be made available. We feel that it truly is safe to assume that strength costs can continue to maximize. Our analysis supports the purchases from the GE Wind generator based on current and raising energy costs. While it is usually our recommendation to move forward with this project, our company is also featuring excel worksheet that Jimmy Peak are able to use to review scenarios. This kind of worksheet is to establish so that Jimmy Peak can easily enter its very own assumptions and based on energy...

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