Exercise 16-25 Internal Rate of Return (Section 1) (LO 16-1) Jack and Jill's Place is a nonprofit nursery school run by the parents of the enrolled children. Since the school is out of town, it has a well rather than a city water supply. Lately, the well has become unreliable, and the school has had to bring in bottled drinking water. The school's governing board is considering drilling a new well (at the top of the hill, naturally). The board estimates that a new well would cost $2,684 and save the school $400 annually for 10 years. The school's hurdle rate is 6 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: Compute the Internal rate of return on the new well. Should the governing board approve the new well? Internal rate of return Approve? %