The National Capital District Commission $($NCDC$)$ is considering the purchase of a

site for a new landfill. The purchase price for the site, including the related

preparatory work, will cost K$322,080.$ The landfill would be useable for $10$ years.

NCDC hired a consultant, who estimated that the new landfill would cost less to

operate $($savings$)$ of K$48,000$ per year than the current landfill. The current

landfill will also last $10$ more years. For a landfill project, NCDC can borrow

money from the national government at a subsidized rate. NCDC$$s required rate

of return is only $6$ per cent for this project. It does not pay any income taxes.

Required:

a$.$ What is the payback period for this investment?

b$.$ Calculate the net present value of the new landfill. Should NCDC approve

the project?

c$.$ Calculate the internal rate of return for the landfill. Should NCDC approve

the project?