An investment has a project cost of $15 million and an operating cost of $5 million pa for its five year life. Salvage at life end is $5 million and escalation for this sort of plant and salvage is 3% pa. If the real weighted cost of capital is 10%, what is the approximate LCC?

Group of answer choices

1) $33 million

2) $31 million

3) $35 million

4) $40 million

5) $30 million

6) $32 million