Question: Erbil Energy Solutions is evaluating two financing options for its renewable energy project. Option A involves obtaining a loan with an annual interest rate of

Erbil Energy Solutions is evaluating two financing options for its renewable energy project. Option A involves obtaining a loan with an annual interest rate of 8%, while Option B entails issuing equity at a cost of capital of 12%. Conduct a scenario analysis to determine the financial impact of each financing option on Erbil Energy Solutions' profitability and long-term sustainability.

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