Fulton Township is studying a 860-acre site for a new landfill. The new site will save $86,000 in annual operating costs for 10 years, as Fulton currently uses the landfill of a neighboring municipality. Other data are:

Purchase price per acre: $630

Site preparation costs: $126,000

Hurdle rate: 4%

Ignore income taxes.

Year	FV of $1 at 4%				FV of an ordinary annuity at 4%				PV of $1 at 4%				PV of an ordinary annuity at 4%
1		1.040				1.000				0.962				0.962
2		1.082				2.040				0.925				1.886
3		1.125				3.122				0.889				2.775
4		1.170				4.246				0.855				3.630
5		1.217				5.416				0.822				4.452
6		1.265				6.633				0.790				5.242
7		1.316				7.898				0.760				6.002
8		1.369				9.214				0.731				6.733
9		1.423				10.583				0.703				7.435
10		1.480				12.006				0.676				8.111

Required:

Required: A-1. Determine Net present value. Net present value A-2. Determine whether the landfill should be acquired. Yes O No B. Determine the landfill's approximate internal rate of return, using PV table. Internal rate of return % and % | Period 4% 10.962 1.886 2.775 3.6.30 4.452 5.242 6.002 6.733 7.435 18.111 8.760 9.385 19.986 10.563 11.118 13.500 17.292 19.793 6% 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 7.887 8.384 8.853 9.295 9.712 11.40 13.765 15.046 8% 10% 2% 4% 6% 0.926 0.909 0.893 0.877 0.862 1.783 1.736 1.690 1.647 1.605 2.577 2.487 2.402 2.322 2.246 3.312 3.170 3.037 2.914 2.798 3.993 3.791 3.605 3.433 3.274 4.623 4.355 4.111 3.889 3.685 5.206 4.868 4.564 4.288 4.039 5.747 5.335 4.968 4.6.39 4.344 6.247 5.759 5.328 4.946 4.607 6.710 6.145 5.650 5.216 4.83.3 7.139 6.495 5.938 3.453 5.029 7.536 6.814 6.194 5.660 5.197 7.904 7.103 6.424 5.842 5.342 8.244 7.367 6.628 6.002 5.468 8.559 7.606 6.81] 6.142 5.575 0.313 35147.49 6.623 5.000 11.258 9.427 8.055 7.003 6.177 11.925 9.779 8.24 7.105 6.234 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.353 5.517 5.548 20% 22% 24% 25% 26% 28% 30% 0.833 0.820 0.806 0.800 0.794 0.781 0.769 1.28 1.492 1.457 1.440 1.424 1.392 1.36] 2.106 2.042 1.981 1.952 1.923 1.868 1.816 2.589 2.494 2.404 2.362 2.320 2.241 2.166 2.991 2.864 2.745 2.689 2.635 2.532 2.436 3326 3.167 3.020 2.95] 2.885 2.759 2.643 3.605 3.416 3.242 3.16] 3.083 2.937 2.802 3.837 3.619 3.421 3.329 3.241 3.076 2.925 4.031 3.786 3.56 3.463 3.366 3.184 3.019 4.192 3.923 3.682 3.57] 3.465 3.269 3.092 4.327 4.035 3.776 3.656 3. 54 3.335 3.147 4.439 4.127 3.85] 3.725 3.606 3.387 3.190 4.533 4.203 3.912 3.780 3.656 3.427 3.223 4.61] 4.265 3.962 3.824 3.695 3.459 3.249 4.675 4.315 4.001 3.859 3.726 3.483 3.268 4.870 4.460 4.110 3.054 3808 354633lc 4.979 4.534 4.160 3.995 3.842 3.569 3.332 4.997 4.544 4.166 3.999 3.846 3.571 3.333 20 30 40