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Your company has the option to invest in a solar PV system. You are currently paying $ 0 . 1 0 per kwh for electricity.

Your company has the option to invest in a solar PV system. You are currently paying $0.10 per kwh for electricity. The capital cost of the project is $2M million dollars. It will generate 4 million kwh per year. The time horizon for the project is 20 years. Your company CFO tells you that your project must earn at least 15% annual ROI, i.e., your hurdle rate is 0.15. Do the analysis to see if this project will satisfy the CFOs requirements.

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