ws10: Cost-Benefit Analysis (CBA) Project information: In the table below presented the data on the investment in the renewable energy 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) Calculate PV using the following formula B, Present value of benet (1+r) C Present value of costs (1+r)* B, -C, Net present value (NPV 4+ (1+r)* Where: R is selected discount rate t is selected period of time B, is benefits over timet C, is costs over timet