There are two potential projects, P and Q, with different life horizons. Specifically, P will last for 5 years and Q will last for 7 years. Their cash flows are illustrated in the following table.

The cost of capital is 15%. The difference in their equivalent annual benefits (P minus Q) is closest to:

1. 0.09
2. 0.19
3. 0.29
4. 0.39

Year P Q 0 -73 -71 1 30 25 2 30 25 3 30 25 4 30 25 5 6 30 25 25 7 25