The Harison Boat Charter Company purchased a small yacht for

$$50000$

$$down payment and $

$2$

$0$

$0$

$0$

$0$

$$at the end of the first year.

Revenues are expected to exceed further cash outlays by $

$1$

$2$

$0$

$0$

$0$

a year for the first six years and by $

$1$

$0$

$0$

$0$

$0$

$$a year for the last

four years. Mr

$.$

$$Harrison$,$ the president, requires a minimum rate

of return of

$1$

$5$

$\%$

$$on his projects. Test whether or not this project

satisfies the requirement by finding the

a

$)$

$$Internal Rate of Return and

b

$)$

$$the Net Present value using

$1$

$5$

$\%$

$$as the cost of capital.