A coal plant is to be built in 2 years, where the capital needed is 1.5 million USD. The project last for 6 years from the beginning until it is decommissioned with 2 years of non operational phase (build phase) and 4 years of operational and decommissioning stage. The company borrowed money $600 k from the bank with interest rate of 5%, compounded quarterly. Tax rate is 10%. The rest of the capital fulfilled from equity where the cost of equity is 6%. Fixed operation cost is 110k per year paid at the beginning of the year. Where the variable cost is $2 for every MWh generated paid at each end of the year. The coal cost is 50 cents for every Megawatts paid at each end of the year. The lifecycle emissions of the plant is 400gramCO2/kWh and carbon tax $20USD/ ton CO2. The tax is also paid at each end of the year. If the power generation is 35MW with capacity factor per year of the power generator is 95%, and the price of electricity is \$ 5 per MWh. Would you accept the deal using? a. NPV rule b. IRR rule c. Payback Period What is the levelised cost of electricity