Investments in energy and electricity are said to have a different level of risk than most investments given their long lives and potential for regulatory changes. Industry analysts and academics have thought about risk in discounted cash flow, however they may not have encountered a level of risk seen in energy investments like nuclear and carbon capture. Discuss how you think risk should be incorporated into investment analysis for energy projects.?

Answer rating: 100% (QA)

Incorporating risk into investment analysis for energy projects particularly those with long lives and potential regulatory changes like nuclear and carbon capture requires a comprehensive and nuanced ... View the full answer