Jack and Jili'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 goveming board is considering drilling a new well (at the top of the hill, naturally). The board estimates that a new well would cost $3,687 and save the school $600 annually for 10 years. The school's hurdle rate is 7 percent. Use lor your reference. (Use appropriate factor(s) from the tables provided.) Required: Compute the internal rate of retum on the new well. Should the governing board approve the new well? Future Value and Present Value Tables Table I \begin{tabular}{rrrrrrrr} \hline 11 & 1.540 & 1.898 & 2.332 & 2.853 & 3.479 & 4.226 & 7.430 \\ 12 & 1.601 & 2.012 & 2.518 & 3.139 & 3.896 & 4.818 & 8.916 \\ \hline 13 & 1.665 & 2.133 & 2.720 & 3.452 & 4.364 & 5.492 & 10.699 \\ 14 & 1.732 & 2.261 & 2.937 & 3.798 & 4.887 & 6.261 & 12.839 \\ \hline 15 & 1.801 & 2.397 & 3.172 & 4.177 & 5.474 & 7.138 & 15.407 \\ \hline 20 & 2.191 & 3.207 & 4.661 & 6.728 & 9.646 & 13.743 & 38.338 \\ \hline 30 & 3.243 & 5.744 & 10.063 & 17.450 & 29.960 & 50.950 & 237.380 \\ \hline 0 & 4.801 & 10.286 & 21.725 & 45.260 & 93.051 & 188.380 & 1.469.800 \\ \hline \end{tabular} Future Value of a Series of $1rach FInwo inwinan. n wn..s.. (1+r)n1 \begin{tabular}{rrrrrrrr} \hline 20 & 29.778 & 36.778 & 45.762 & 57.276 & 75.052 & 91.025 & 186.690 \\ 30 & 56.085 & 79.058 & 113.283 & 164.496 & 241.330 & 356.790 & 1,181.900 \\ 40 & 95.026 & 154.762 & 259.057 & 442.597 & 767.090 & 1,342.000 & 7.343.900 \end{tabular} Table III Present Value of $1.00(1+r)n1 \begin{tabular}{rrrrrrrrrrrrrrrrrr} \hline 11 & .650 & .527 & .429 & .350 & .287 & .237 & .195 & .162 & .135 & .112 & .094 & .079 & .066 & .056 & .047 \\ 12 & .625 & .497 & .397 & .319 & .257 & .208 & .168 & .137 & .112 & .092 & .076 & .062 & .052 & .043 & .036 \\ 13 & .601 & .469 & .368 & .290 & .229 & .182 & .145 & .116 & .093 & .075 & .061 & .050 & .040 & .033 & .027 \\ 14 & .577 & .442 & .340 & .263 & .205 & .160 & .125 & .099 & .078 & .062 & .049 & .039 & .032 & .025 & .021 \\ 15 & .555 & .417 & .315 & .239 & .183 & .140 & .108 & .034 & .065 & .051 & .040 & .031 & .025 & .020 & .016 \\ \hline 20 & .456 & .312 & .215 & .149 & .104 & .073 & .051 & .037 & .026 & .019 & .014 & .010 & .007 & .005 & .004 \\ 30 & .308 & 174 & .099 & .057 & .033 & .020 & .012 & .007 & .004 & .003 & .002 & .001 & .001 & \\ \hline 40 & .208 & .097 & .046 & .022 & .011 & .005 & .003 & .001 & .001 & & & \\ \hline \end{tabular} T1(1(1+rn)1)
