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At what discount rate will you be indifferent between the following project options: Option 1 Capital Cost ($Mn)10,000 Annual Operating Cost ($Mn/yr) 900Annual Benefits ($Mn/yr)1,200
At what discount rate will you be indifferent between the following project options:
Option 1 Capital Cost ($Mn)10,000 Annual Operating Cost ($Mn/yr) 900Annual Benefits ($Mn/yr)1,200 Useful Life (years)50
Option 2
Capital Cost ($Mn)9,000 Annual Operating Cost ($Mn/yr) 800Annual Benefits ($Mn/yr) 1,000 Useful Life (years)50
(your answer must be rounded off to the nearest %, i.e., no decimal places)
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