Question: I'm trying to decide which option between the solar power or generator project makes economic sense for the business, please assist with the economic analysis


I'm trying to decide which option between the solar power or generator project makes economic sense for the business, please assist with the economic analysis for the company.
Solar system The expected cost of installation of the solar system is R7.79 million. This system should account for the installation of 100 , high efficiency 650W solar panels. The combination of the solar system and batteries will allow for additional cost savings. The costs to maintain this system will total R50 000 per annum. Generators The expected cost of installation of the generators is R6 million. The generators would be used solely during loadshedding (you may assume no other material power outages will occur). Costs to operate the generator will total R100 000 per annum. This does not factor in any future movements of the Oil price. Note 1 Property, Plant, and Equipment comprises of the hardware relating to the mining rigs use by Crypto. The average age of the hardware is 2 years old and has an estimated useful life of 6 years. Note 2 The short-term credit facility has been negotiated by management to bridge any financing needs. This facility attracts interest at Prime +2%. - Assume that all installation costs are paid on the 1 September 2022. - Management have tailored the trading algorithm to trade so that management earn a minimum cash profit of 5% of invested capital per block mined. - The evaluation must be prepared using a forecast period of 5 years. - Crypto management have a required return of 16.5%. - All estimates provided are the most accurate and up-to-date estimates that could be sourced
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