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Your company is evaluating building a new 25MW solar farm that would cost $35 million upfront and operate for 25 years. Electricity production is projected

Your company is evaluating building a new 25MW solar farm that would cost $35 million upfront and operate for 25 years. Electricity production is projected at 50,000 MWh per year which could be sold to the grid at current wholesale rates of $0.05/kWh. Operating costs are estimated at $500,000 per year. For discussion: Calculate the NPV of this solar farm project over 25 years, using a discount rate of 7%. Based on your analysis, would you recommend moving forward with this project? Now calculate the IRR. How does this compare to the company's typical minimum IRR threshold of 10% for new projects? Discuss key assumptions that could impact the economic viability. Brainstorm factors that could alter the NPV and IRR. How would you assess the risks to determine if the project should move forward

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