HELP!!!

sumedha (service) (33 Points)

24 December 2008  

Hi,

I am an environmental consultant working in wind power projects. I have to carry out this financial analysis for wind power projects. Please find attached the sheet and comments from an examiner, who is a financial expert. Pleaseeeee and kindly answer the following queries i have related to such projects. the queries are as follows:

a) Are we to depreciate the entire project cost (100%) while carrying out the book depreciation or should we depreciate the project cost uptil (Project cost -  Salvage Value). 

b) Wind power projects are also eligible 80% accelerated depreciation in the first year. Again in this case should we considere the entire project cost or project cost without the salvage value.

c) Under what circumstances a company may not be eligible for the tax shield.

Also kindly have alook at the sheet attached (along with the experts comments) and let me know if there's any scope of improvement.

This needs to be done on a urgent basis. so plsssssss help!!!!!!!!!!

ena