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Q 6 ( Chapter 1 2 ) ( 1 2 marks ) Green Energy Solutions ( GES ) is evaluating a new project to expand

Q6(Chapter 12)(12 marks)
Green Energy Solutions (GES) is evaluating a new project to expand its renewable energy portfolio. The project involves the development of a new solar farm. GES's management is considering this investment to enhance its sustainable energy offerings and support long-term growth. The project's initial outlay is $2 million, and it is expected to generate uneven cash inflows over its 5-year life.
a. Discuss at least two methods to conduct risk analysis in capital budgeting decisions. (4 marks)
b. Assume the following uneven cash inflows from the solar farm project (in millions): Year 1: $0.3, Year 2: $0.5, Year 3: $0.8, Year 4: $0.8, Year 5: $1. The discount rate for GES is 10%. Calculate the project's NPV and interpret the result. (4 marks)
c. Determine the project's IRR and assess the project's feasibility. (4 marks)
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