Berkshire Hathaway is considering investing in a renewable energy project. Fixed investment costs are $3 billion, with variable operating costs estimated at $400 million annually. Berkshire Hathaway expects the project to generate $1.5 billion in annual revenue from energy sales.

Requirements:

• Calculate the total investment and annual operating costs for the renewable energy project.
• Determine the ROI and payback period for the investment.
• Analyze the environmental and regulatory factors influencing renewable energy investments.
• Discuss the strategic benefits of diversifying into renewable energy sources.
• Evaluate the financial implications of the project on Berkshire Hathaway's financial statements.
• Recommend sustainable energy practices and community engagement strategies.