SF is a private limited company that develops and maintains large-scale solar farms in country X. SF operates as a capital intensive business. Bob is an entrepreneur and the majority shareholder of SF. He invested into SF's first solar farm. SF took out high-interest bank loans to cover initial cash flow problems and provide working capital. SF used internal (organic) growth over the next 10 years. SF rents fields from farmers. Its main capital expenditure is solar panels, which are installed on the rented fields. The solar panels generate electricity, which SF sells to energy providers. Solar panel technology is constantly improving. SF operates five solar farms in country X. A team of seven engineers maintain all of SF's solar farms. Table 1.1 shows SF's budgeted and actual data for 2024. Table 1.1 SF's annual budgeted and actual data for 2024 Budget ($m) Actual ($m) Revenue 5 4 Total costs 3 3.75 Profit 2 0.25 Bob has identified that SF can increase its revenue by using batteries to store electricity generated by the solar panels. This electricity can then be sold at peak times for premium prices. This will require significant investment into battery technology. Bob wants to retain control of SF but is concerned about the investment required for further growth. In 2024 the cost of renting new farmland and purchasing solar panels increased significantly. ZB is a multinational battery manufacturer that is keen to start a joint venture with SF. If the joint venture goes ahead, ZB will insist that SF uses ZB batteries in all future solar farms.