Compare solar vs biomass paybacks and recommend

Compare two investment options. Treat all energy prices and costs as per MWh, with a selling price of $40 per MWh. Project A (Solar) has an initial investment of $12.5M, zero variable cost, and a production profile of 150,000 kWh/day for 75% of the year and 50,000 kWh/day for the remaining 25%. Project B (Corn biomass) has an initial investment of $2.5M, a variable cost of $30 per MWh, and a steady annual output of 100,000 MWh. Tasks: (1) calculate each project's annual profit and payback period, where profit offsets the initial investment; (2) if both projects receive a $5 per MWh carbon credit, recompute the payback periods; (3) determine the annual output the biomass plant would need to achieve the same payback as the solar project from part (1); (4) recommend either A or B, supporting your choice with at least three non-financial factors (for example, fuel supply risk, permitting/interconnection, scalability, offtake certainty). Overview: This question assesses quantitative financial modeling, scenario analysis, and decision-making ability for a Data Scientist position by asking for annual profit and payback calculations, carbon credit adjustments, and comparative output analysis; it falls under the Statistics & Math domain and focuses on applied numerical analysis rather than purely conceptual theory. It is often used to test how well candidates apply statistical and mathematical methods to real-world energy investment problems, run sensitivity and scenario analyses, and incorporate non-financial factors such as supply risk, permitting complexity, and scalability into evidence-based recommendations.