The following table provides the costs and benefits of building two different kinds of power plants...

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The following table provides the costs and benefits of building two different kinds of power plants with different useful lifespans. Characteristics Nuclear Solar Capital Costs (1e6$) 200.0 20.0 Annual Benefits (1e6$) 50.0 4.5 Annual Operating & Maintenance Costs (1e6$) Annual Fuel Costs (1e6$) 6.0 1.0 2.0 0.0 Useful Life of Plant (years) 50.0 35.0 Question #1 What is the Net Present Value (NPV) of each plant using a discount rate of 7%? Question #2 What is the equivalent annual net benefit of each plant using a discount rate of 7%? Question #3 Based on the discussion in lecture, which social discount rate do you think is most appropriate to use for evaluating these projects: the marginal rate of time preference or the opportunity cost of capital? The following table provides the costs and benefits of building two different kinds of power plants with different useful lifespans. Characteristics Nuclear Solar Capital Costs (1e6$) 200.0 20.0 Annual Benefits (1e6$) 50.0 4.5 Annual Operating & Maintenance Costs (1e6$) Annual Fuel Costs (1e6$) 6.0 1.0 2.0 0.0 Useful Life of Plant (years) 50.0 35.0 Question #1 What is the Net Present Value (NPV) of each plant using a discount rate of 7%? Question #2 What is the equivalent annual net benefit of each plant using a discount rate of 7%? Question #3 Based on the discussion in lecture, which social discount rate do you think is most appropriate to use for evaluating these projects: the marginal rate of time preference or the opportunity cost of capital?