Think about a small project, which you would like to implement in your department. It could either be a fresh idea or an expansion of an already existing project. This project should aim at maximizing the returns out of the investment, which you would make. $(12$ marks$)$

$$ Briefly highlight the Project

$$ Identify the cash flows for the project in terms of revenues and expenses. Write the rationale for

these cash flows. $($Both inflows and outflows$)$

$$ Tenure for the project should be between $58$ years.

$$ Determine the cost of capital for the project.

$$ Compute IRR, NPV and Payback Period of the project over a life of the project. Suggest if the project

should be accepted. Give reasons for the same.

$$ Comment on the ESG considerations if taken care of as a part of the project.