5.2  Break Even Analysis

The breakeven Discount Rate is the Discount Rate at which the NPC of the PPP and the PSC are equal.  This rate should be calculated to test the sensitivity of the VFM assessment to movements in the Discount Rate.  In cases in which the VFM assessment is affected by small variations in the Discount Rate, it is recommended that more reliance is placed on qualitative VFM measures in assessing overall VFM.