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 $$2,288$ and save the school $$700$ annually for $10$ years. The school's hurdle rate is $8$ percent.

Use Appendix A for your reference.

Note: Use appropriate factor$($s$)$ from the tables provided.

EX $16-25($Algo$)$ Internal Rate of Return $($Section $1)($LO $16-1)$

Required:

Compute the internal rate of return on the new well. Should the governing board approve the new well?

$\backslash$table$[[$Internal rate of return$],[$Approve$?]]$