from an external source$)$ by a remote community for $$480,000$ and used for $10$ years,

when its salvage value is $$50,000.$ Or it can be leased for $$70,000$ a year. $($Remember that

lease payments occur at the start of the year$).$ The community's interest rate is $8\%.$ Show

your calculations in your working document. You can however create your table in MS

Excel, but you will need to copy and paste it in your working document.

a$.$ Using the $RR$ method, choose the best option.

b$.$ The community will spend $$80,000$ less each year for fuel and maintenance than

it currently spends from buying the power from a third party. What is would be

the $RR$ from buying the generator assuming it was an independent project?

c$.$ Repeat b$)$ but now do the same for leasing the generator.

Consider the following three mutually exclusive alternatives. Each alternative has a

$10$year useful life and no salvage value. Using present worth analysis, draw a graph in

the MS Excel template on sheet Q$8$ showing these three alternatives for various interest

rates $($save this graph as a separate sheet in MS Excel and name this sheet Graph Q$8).$

Also construct a choice table for interest rates from $0\%$ to $100\%.$ Show your choice table

in your working document.