$1)$ A policy has the following $($real$)$ costs and benefits:

Year $012$

Costs $800,000250,0000$

Benefits $0600,000600,000$

Assume that $3\mathrm{.}5\%$ is the appropriate discount rate. Using only a calculator $($and showing your work, including any formulas used; i$.$e$.,$ not using Excel$)$:

a$.$Calculate the present value of the policy$$s benefits, PV$($B$),$ and the present value of its costs, PV$($C$).$

b$.$Calculate the net present value $($NPV$)$ and benefit$-$cost ratio for this policy.

c$.$Is the internal rate of return $($IRR$)$ greater or less than $3\mathrm{.}5\%?$ Explain how you reached that conclusion. $($You do not need to calculate the IRR to answer this question. In fact, I don$$t want you to even try to calculate it$!$ You can answer whether the IRR is greater or less than $3\mathrm{.}5\%$ based on your previous answers.$)$