Ann: Senior Secured Bond Issue Investor Calls Commencing, page-62

Hi 29, the discount rate of the restart study was at 7%, which is quite low for many economic studies usually in the range of 8-10%. The discount rate comes in handy to compute the present value of any project or investment. For instance, some use the rate of return they wish to receive from the investments depending on the risk involved, while others use their weighted average cost of capital (WACC) as a discount rate.

For a project like this, most investors would like a return of higher than 7%...

Note - the higher the discount rate (10% for example) the significantly less the NPV. Not many feasibility studies are done at a 7% rate and the financiers would know this -> so would opt to do the calculations at a higher discount rate for risk purposes to see how "really" feasible the project is.