Climate is changing and in the California Central Valley much of that change has been warmer low temperatures at night. In 2020, you are planting a new orchard of pistachio trees that will reach full production during years 2030 through 2070. You expect winter night-time lows to rise and reduce the future expected chill-hours that are likely to reduce average annual yields by 10% starting in 2050.

1. A new variety of pistachio tree that does not need such a cool winter and would not suffer any deficit in chill hours, but this new variety will have 5% lower yield in every year (2030-2070).

b.) If the yield loss of the new variety is an average of 4% not 5%, which would you choose? Do not worry about showing any calculation. Instead explain your reasoning and explain what interest rate you would use in your assessment and why it matters.