A diesel generator for electrical power can be purchased $($it is now buying the power

from an external source$)$ by a remote community for $$480,000$ and used for $10$ years,

when its salvage value is $$50,000.$ Or it can be leased for $$70,000$ a year. $($Remember that

lease payments occur at the start of the year$).$ The community's interest rate is $8\%.$ Show

your calculations in your working document. You can however create your table in MS

Excel, but you will need to copy and paste it in your working document.

a$.$ Using the IRR method, choose the best option.

b$.$ The community will spend $$80,000$ less each year for fuel and maintenance than

it currently spends from buying the power from a third party. What is would be

the IRR from buying the generator assuming it was an independent project?

c$.$ Repeat b$)$ but now do the same for leasing the generator. use a table to show the cashflow and how they add and subtract, extreme lost on how the cashflow interact with each other.