Section B: (60 marks) Answer ALL questions. Question 1 (30 marks) Happy Village is considered to install either a wind turbine or solar energy generation as its green issues initiative. The initial investment cost, maintenance cost and the electricity generation for these two systems are listed as follows: Wind turbine 60,000 Solar energy generation 73,000 5,500 8,500 Initial investment cost ($) Annual maintenance cost ($) Annual Electricity generation (kWh) 10,000 16,000 a. Assuming the electricity cost is $1.2/kWh, what are the payback periods of wind turbine and solar energy generation systems? (10 marks) b. Based on your answer in (a), which system would you propose to Happy Village? Explain briefly. (3 marks) c. In Happy Village the payback period of any investment must be less than 10 years. Assuming the cost of capital is 8%, would you suggest Happy Village to adopt your proposed system in (b)? Provide your calculation for justification. (7 marks) d. In Lucky Village the electricity cost is $1.29/kWh. Based on the same parameters in (C), should Lucky Village adopt the proposed system in (b)? Provide your calculation for justification (10 marks) Hint: Annual energy cost saving = annual electricity generation x electricity cost Annual cost saving = annual energy cost saving -annual maintenance cost