Peaker plants are electricity-producing power plants that can easily be turned on and off and only generate electricity when electricity prices are high. An electricity producer is considering building a peaker plant at a cost of $10 million. The companys analysis indicates that the peaker plant will be a positive NPV investment given the companys internally-generated electricity price forecasts. However, the companys Chief Operating Officer is not convinced and says, Our analysts have historically underestimated the volatility of electricity prices. I think that electricity prices will be a lot more volatile than our analysts are estimating. This makes the plant a lot riskier, and the present value of the plant should be less than $10 million. I am therefore opposed to building the peaker plant. Do you agree with the Chief Operating Officer? Please provide the rationale behind your answer.