Q$6($Chapter $12)(12$ marks$)$

Green Energy Solutions $($GES$)$ is evaluating a new project to expand its renewable energy portfolio. The project involves the development of a new solar farm. GES's management is considering this investment to enhance its sustainable energy offerings and support long$-$term growth. The project's initial outlay is $$2$ million, and it is expected to generate uneven cash inflows over its $5-$year life.

a$.$ Discuss at least two methods to conduct risk analysis in capital budgeting decisions. $(4$ marks$)$

b$.$ Assume the following uneven cash inflows from the solar farm project $($in millions$)$: Year $1$: $$0\mathrm{.}3,$ Year $2$: $$0\mathrm{.}5,$ Year $3$: $$0\mathrm{.}8,$ Year $4$: $$0\mathrm{.}8,$ Year $5$: $$1.$ The discount rate for GES is $10\%.$ Calculate the project's NPV and interpret the result. $(4$ marks$)$

c$.$ Determine the project's IRR and assess the project's feasibility. $(4$ marks$)$