There is a piece of land, and you are trying to decide which project you want to process. Project 1 is to build a farm which will last for 50 years, and cost 2 million (in real $) upfront. Project 2 is to build a playground which will cost 0.5 million and only last for 10 years.

If the farm could have benefits of 0.1 million (real $) at the end of each of the 50 years and the playground could have benefits of 0.05 million (real $) at the end of each of the 10 years. The real discount rate is 3%.

What is the NPV for Project 1?

What is the NPV for Project 2?

Lastly, Calculate the equivalent net benefit of each project.