{"blocks": [{"key": "7caa6367", "text": "Scenario", "type": "header-two", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "e48d1171", "text": "Energy One must choose between two renewable projects.", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "4694120e", "text": "Solar: upfront $12.5 M, VC $0, production 75 % of the year at 150,000 units and 25 % at 50,000 units, price $40/unit.", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "b61cbf12", "text": "Corn bio-power: upfront $2.5 M, VC $30/unit, constant output, price $40/unit.", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "11389665", "text": "Question", "type": "header-two", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "cd1cbf98", "text": "a) Calculate the payback period (years until cumulative profit equals initial investment) for the solar project.", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "88a6c317", "text": "b) Do the same for the corn project.", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "80ab5ec7", "text": "c) Which project should Energy One pursue and why?", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "45b65f69", "text": "Hints", "type": "header-two", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}, {"key": "a924ff5b", "text": "Annual profit = revenue − variable cost. Use production profile for solar, constant for corn. Payback = initial investment / annual profit; compare results plus qualitative factors.", "type": "unstyled", "depth": 0, "inlineStyleRanges": [], "entityRanges": [], "data": {}}], "entityMap": {}}