You are given the following information about a project:

Time	0	1	2	3	4	...	9
Expected Payoff	-59000	6000	8000	8500	9500	...	16500

You are given the projects internal rate of return is 5.12%, the risk free interest rate is 2.5%, and the market risk premium is 3.8%. Determine the break even level for the projects cost of capital.

Answers:

5%

1%

2%

3%

4%