A group of farmers north of Kingston are considering building an irrigation system using water from the Cataraqui River.

They want to build a concrete reservoir with a steel piping system. A local contractor has given them a quote of

$200,000 for the construction and commissioning. The real maintenance cost is estimated at $2000 per year. The

system is expected to bring them $22,000 per year in additional (real) revenue due to better crop production. The

actual dollar MARR is 7.5% and they anticipate inflation to be 3% per year. Assume that the reservoir system will have a

20 year life.

A. What is the real IRR of this project?

B. What is the actual IRR of this project?

C. What is the real MARR?

D. What is the present worth of the project?

Please answer fully