Exxon Mobil is assessing the costs for expanding its renewable energy portfolio. Fixed investment costs are $1 billion, and variable operating costs are estimated at $100 million annually. Exxon Mobil expects annual revenue from renewable energy projects to reach $500 million.

Requirements:

• Calculate the total investment and annual operating costs for the renewable energy expansion.
• Determine the ROI and NPV of the investment over a 10-year period.
• Analyze the strategic rationale for diversifying into renewable energy.
• Discuss the environmental and regulatory considerations in renewable energy investments.
• Evaluate the financial impact of renewable energy projects on Exxon Mobil's balance sheet.
• Recommend sustainable energy strategies to mitigate risks and enhance profitability.