Apply capital budgeting techniques $($NPV$,$ IRR, Payback Period$)$ for both projects.$*$

Sustainable Power Solutions $($SPS$),$ a forward$-$thinking energy company, is at a critical juncture,

considering two mutually exchusine projects for expansion. As the concluding activity for your

principles of finance course, your goal is to analyze both projects using capital budgeting techniques

and recommend the most financially sound opcion to the company's executive board.

"Case Study Scenario"$*$

You are a team of financial analysts takkd with evaluating the feasibility of Green Energy Ventures'

expansion project. The project in wohes the following key details:

"Initial lnvestment:$"$ The project requires a substantial initial investment, covering land

acquisition, solar panels, battery stonge systems, installation, and working capital.

"Expected Cash Flows:" The projocted annul cash floms over the next $10$ years are based on

revenue from energy sales, operational costs, and maintenance expenses.

$*$Discount Rate; $*4$ The compumy's cost of expital is $1125\%,$ representing the minimum

acceptable rate of retum for investment projects.

$$Project Detaik:$*$

"Project A: Hydroeketric Power Plant"

A project focused on constructing a hydroelectric power plant to hamess energy from a nearby

river.

$"$Project Be Biomass Energy Production"$*$

A project aimed at establishing a biomss energy production facility, utiliving organic waste

materials for energy generation.

"Inital Investment,"$4$

Project A $$30$ million

Dam Construction: $$15$ milbon

Turbines and Gene rators: $$10$ million

Environmenal Impact Assessments: $$3$ million

Worlaing Cypital: $$2$ mition

Project B; $$25$ million

Facility Constructions $$12$ milion

Biomas Processing Equipment $$8$ milion

Regulatory Compliance and Pernits: $$3$ million

Working Capital: $$2$ million

$*$

Year $1$:

Projece A$.$ $$8\mathrm{.}0$

Project B; $$7\mathrm{.}5$

Year $2.$

Project A: $$9\mathrm{.}0$

Project B:$$8\mathrm{.}0$ Year $3$: A:$$10$ B:$$8\mathrm{.}5$ Year $4.$ A:$$10\mathrm{.}5$ B:$9\mathrm{.}0$ Year $5.$ A:$$11\mathrm{.}0$ B:$$9\mathrm{.}5$