The City of Bedford is studying a 600-acre site on Route 356 for a new landfill. Th

The City of Bedford is studying a 600-acre site on Route 356 for a new landfill. The startup cost has been calculated as follows: Purchase cost: $450 per acre Site
preparation: $175,000 The site can be used for 20 years before it reaches capacity. Bedford, which shares a facility in Bath Township with other municipalities,
estimates that the new location will save $40,000 in annual operating costs. a. Should the landfill be acquired if Bedford desires an 8% return on its investment?
Use the net-present-value method to determine your answer. b. Compute the internal rate of return on this project.