Question: At what discount rate will you be indifferent between the following project options: Option 1 Capital Cost ($Mn)10,000 Annual Operating Cost ($Mn/yr) 900Annual Benefits ($Mn/yr)1,200

At what discount rate will you be indifferent between the following project options:

Option 1 Capital Cost ($Mn)10,000 Annual Operating Cost ($Mn/yr) 900Annual Benefits ($Mn/yr)1,200 Useful Life (years)50

Option 2

Capital Cost ($Mn)9,000 Annual Operating Cost ($Mn/yr) 800Annual Benefits ($Mn/yr) 1,000 Useful Life (years)50

(your answer must be rounded off to the nearest %, i.e., no decimal places)

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