• GE is considering a new renewable energy project with the following financial implications:
  • Initial Investment: $2 billion
  • Estimated Annual Revenue: $600 million
  • Operating Costs: $350 million annually
  • Depreciation Expense: $100 million annually
  • Tax Rate: 28%

• Requirements:
  1. Calculate the annual net income from the new project.
  2. Prepare a five-year income projection for the renewable energy project.
  3. Analyze the payback period for the initial investment.
  4. Discuss the impact of the new project on GE's overall financial strategy.
  5. Evaluate the risks associated with the new renewable energy investment.