4. Describe why this potentiai project constitutes a "real option" for this firm. In doing so, describe why, even if the NPV of all of your investments were to appear negative from your perspective at time zero, it is possible that the project could still be worth pursuing. No need to make any additional calculations yet to figure out if the option is valuable; just remark at why a negative NPV would not necessarily rule out the prospect of pursuing this project. Part 3 - Real Options BrightFuture Inc. is an alternative energy company that 1tcuses mainly on providing power to homes and businesses using solar energy. Your company is considering pursuing an ambitious new project, which would entail building and maintaining a large installation of solar panels in the dessert in Arizona. The electricity produced by the solar panels could then be used to supply power to the Phoenix and San Diego areas. The project would require an initial investment of $30 million this year, which would go towards getting the necessary permits and helping the government complete its environmental impact review, in addition to acquiring an initial inventory of solar panels. The viability of the project will depend on a number of difficult to predict factors including how fast the price of solar panels declines, whether the government is willing to fast-track the process for getting permits, and how much the demand for energy increases in San Diego and Phoenix over time. Three years from now, some of the sources of uncertainty will be resolved. If the regulatory process and market forces are favorable to you, you'll be able to capitalize on the project's upside and supply power to Phoenix and San Diego