Calculate the initial investment required for each project. Estimate the annual cash flows for each project over the next $5$ years.Year $3$:

Project A: $$10\mathrm{.}0$

Project B: $$8\mathrm{.}5$

Year $4$:

Project A: $$10\mathrm{.}5$

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

Year $5$:

Project A: $$11\mathrm{.}0$

Project B: $$9\mathrm{.}5$

$**$ Required Deliverables: $*$

Galculate the initial investment required for each project.

Estimate the annual cash flows for each project over the next $5$ years.

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

Provide a comparative analysis of the two projects.

Make a recommendation to the executive board based on your analysis."Bachground:$*$

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

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

principles of fimance couse, your goul is to a nalyze both projects using capital budgeting techniques

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

"Case Study$-$Scemanio"t

You are a team of financial analyss usked with evaluating the feasibility of Green Energy Ventures'

expassion project. The project involves the following key detaik:

"Iritial lavestment:" The project requires a substantial initial investment, covering land

acquisition, solar pancls, battery stonge systems, installation, and working capial.

"Expected Cash Flows;" The projocted annul cash flows over the next $10$ years are bused on

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

accepable rate of retum for investinent projects.

"Project A: Hydrocketric Power Plant"

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

river.

"Project B$.$ Biomass Energy Production"$*$

A project aimed at establishing a biomass energy production facility, utilizing organic waste

murenals for energy generation.

$*$Initial Investment"

Project A$-$ $$30$ milion

Dam Construction: $$15$ million

Turbines and Generators; $$10$ million

Environmental Impuat Assessments: $$3$ million

Working Capital $$2$ milion

Project B; $$25$ million

Facility Construction: $$12$ milion

Biomiss Processing Equipmente $58$ mition

Regulatory Compliance and Permits: $53$ million

Working Capital $$2$ million

"Annual Cash Flows $($in millions LSD$)$: $*4$

Year $1$:

Project A: $$8\mathrm{.}0$

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

Year $2$:

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

Project B: $$8\mathrm{.}0$