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Apply capital budgeting techniques ( NPV , IRR, Payback Period ) for both projects. * Sustainable Power Solutions ( SPS ) , a forward -
Apply capital budgeting techniques NPV IRR, Payback Period for both projects. Sustainable Power Solutions SPS a forwardthinking 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 years are based on revenue from energy sales, operational costs, and maintenance expenses. Discount Rate; The compumy's cost of expital is 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," Project A $ million Dam Construction: $ milbon Turbines and Gene rators: $ million Environmenal Impact Assessments: $ million Worlaing Cypital: $ mition Project B; $ million Facility Constructions $ milion Biomas Processing Equipment $ milion Regulatory Compliance and Pernits: $ million Working Capital: $ million Year : Projece A $ Project B; $ Year Project A: $ Project B:$ Year : A:$ B:$ Year A:$ B: Year A:$ B:$
Apply capital budgeting techniques NPV IRR, Payback Period for both projects.
Sustainable Power Solutions SPS a forwardthinking 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 years are based on
revenue from energy sales, operational costs, and maintenance expenses.
Discount Rate; The compumy's cost of expital is 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,"
Project A $ million
Dam Construction: $ milbon
Turbines and Gene rators: $ million
Environmenal Impact Assessments: $ million
Worlaing Cypital: $ mition
Project B; $ million
Facility Constructions $ milion
Biomas Processing Equipment $ milion
Regulatory Compliance and Pernits: $ million
Working Capital: $ million
Year :
Projece A $
Project B; $
Year
Project A: $
Project B:$ Year : A:$ B:$ Year A:$ B: Year A:$ B:$
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