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 unrellable, 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 $$3,051$ and save the school $$540$ annually for $10$ years. The school's hurdle rate is $10$ percent.

Use AppendlX A for your reference. $($Use approprlate 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?