Phase 3

Phase 3: Windforce

* Construction for all new facilities should start at the beginning of 2017

* Facilities will become operational at the beginning of the 2018 fiscal year

* The forecast of surplus at the end of 2016 will determine the internal funds available

* Cost of in- house and new material is 10% more than current component cost

* Cost of offshore turbines 15-20% higher than onshore turbines

* 2018 offshore turbine forecast of 60 turbines

* manufacturing facilities should meet the combined Terra and Mariner turbine production needs of the company for the five years following the facilities becoming operational (2018- 2022)

* 1/3 sales in US and 2/3 in Europe

* Each manuf. Facility would be equal in size and configuration, between 30-40,000 square feet ($15 million each building) ($5 million each land)(can produce around 300 turbines annually)

1) In general, discuss the current and projected future states of the wind energy industry and come to an agreement on the prospects for WindForce’s position in the industry.

2) Complete the forecast for the first two years of the five-year forecast (2016 and 2017) under the scenario that the current operations will continue in the leased facility with the same components subcontracted. The reason for initially forecasting only the first two years is to determine the surplus cash showing in the balance sheet for the end of 2017 from which funding for the new facilities will be drawn.

3) Enter the sales growth rate forecasts for Terra and Mariner turbines for 2018-2020.

4) Extend the production forecasts for Terra and Mariner to 2022 which is the fifth year of the expansion operations and the year in which the required production capacity of the new facilities will be determined. From this forecast decide how many manufacturing facilities will be constructed based on the per facility capacity.

5) Decide how much 2017 surplus cash as well as...