Green energy and the adoption of solar and wind power

by | Feb 26, 2022 | Technology

Green energy is in the news these days, and the adoption of solar and wind power, as examples, is being encouraged through various types of tax
credits and other incentives. This case presents realistic data regarding the decision to install solar
power for three bank branches in Los Angeles. A base case spreadsheet is provided for you, so that
you do not have to build that from scratch. Before considering the details of the assignment, study
the spreadsheet to be sure that you understand how it was developed, and discover how the facts in
the case regarding costs, taxes, incentives, efficiencies, and so on were incorporated into the
spreadsheet.
The top portion of the spreadsheet presents model inputs from the case. Here it is important to pay
attention to the units of measurement (W versus kW). The middle portion presents the year-by-year
economics. An important factor here is accounting for both the accelerated depreciation (MACRS)
and the tax implications of energy savings: without solar panels, energy cost is an expense that
decreases taxable profit, but with solar panels, lower cost means more tax. The case does not present
the details of the profitability and tax obligations per store (and they are not accounted for on the store
level), but a reasonable assumption is that Wells Fargo earns a positive profit larger than its energy
costs. Finally, the bottom part of the exhibit presents the present value calculations for the NPV over
12 years—the decision-maker’s goal, stated in the case, is over 30 years, the stated life-span of the
project—and the payback period without accounting for the time-value of money. Assume the base
case spreadsheet is correct, and do not try to change its logic.
Before beginning the assignment, please watch the video below which provides some additional
background regarding the solar panel decision.
http://www.youtube.com/watch?v=mQDWywjH__w
Next, watch the instructional video below that provides an introduction into some Excel tools for
sensitivity analysis, specifically one-way and two-way data tables. You may have to copy and paste
this link into your browser.
https://utexas.zoom.us/rec/share/60jU3dUvGci8E4UlAt-
EV9A8pEA9dkXqHUXlxrvV0aACPCxNMJ1pjXwckOdSvriP.D91PXBgOu_s0IuUt
There are several uncertainties that might be considered in a sensitivity analysis for Wells Fargo. For
simplicity, focus your analysis on the 30 year NPV (cell B60). Please consider the following in your
analysis:

  1. The SIP rebate rate is estimated to be $1.95/W. What if that rate turns out to be lower? It might
    be worth investigating how the NPV of the project would change if the SIP rate goes all the way to 0,
    by considering SIP rates of $1.95, $1.50, $1.05, $.75 or no SIP. Develop a one-way data table to
    explore these possibilities
  2. Develop a two-way data table that shows the calculation of the 30-yr NPV for SIP rates of $1.95,
    $1.50, $1.05, $.75 or no SIP, and also for 0%, 10%, and 20% price decreases in the estimated total
    system cost per KW.
  3. What if the annual degradation in the solar panels increased from 0.50% per year to 1.0% per
    year? You could assume some reasonable increments for this change.
  4. What if the federal tax credit were to be reduced?
    Prepare a two-page discussion of a reasonable and “manager friendly” sensitivity analysis of this
    case. In conducting this analysis, I assume that you will use some one-way and two-way data tables.
    Show the most relevant tables in an Appendix to your two-page discussion of the sensitivity of the
    analysis to the changes in the input factors identified above.

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.


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God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

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