(3 marks) (b) AAA energy company is considering a project of solar energy plant There are two different systems (rotating system and fixed system under consideration. These two systems come with different cost and efficiency. Rotating system is better in efficiency and lasts for 10 years with higher cost. Fixed system is less efficient, but it lasts for 12 years and the cost is lower. The company has already secured the land usage contract for the energy plant. The local government has granted the company free usage of the land as long as it operates as support for green energy and environment. The company intends to operate the project for infinite time, which means that the systems will be replaced once they reached their maximum useful life. The project team provided some estimated figures as below: Detail Purchase Price Yearly Revenue Yearly Costs Salvage Value Useful Life Grade A $510,000 5135,000 ($12,000) $10,000 10 years Grade B $360,000 $100,000 (37,000) $9,000 12 years Assuming there is a constant corporate tax of 30% and no inflation so the above figures and tax rate won't change in the future. Deprecation method follows straight line teg 10% per year for rotating system. The project team has conducted a further analysis and provided some additional information below: Project beta 14. risk free rate 5.p., and market risk premium 76.p.a. Please complete the analysis for AAA energy company and provide advice on the choice of system