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Required information Use the following information to answer questions 4547 [The following information applies to the questions dispilayed below], Washington County's Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter ets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board's decision appear below. In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which cost $180,000 The old snowplow could be sold now for $18,000. The new, larger plow will cost $16,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $94,000 per year in additional tax revenue for the county In analyzing the runway proposa, the board has decided to use a 10 -year time horizon. The county's burdle rate for capital projects is 20 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Problem 16-47 Internal Rate of Return; Sensitivity Analysis (Section 1) (LO 16-1, 16-3) In anaiyzing the runwoy proposal, the board has decided to use a 10 -year time honizon. The county's hurdle rate for capital projects is 20 percent. The County Board of Representatives believes that if the county conducts a promotional effor costing $28,000 per year, the proposed long runway will result in substantialy greater economic develapment than was projected originally. However, the board is uncertain about the actual increase in county tax revenue that will result. Required: Suppose the board builds the long runway and conduct the promotional canpaign. What would the increase in the county's annual tax-evenue need to be in order for the proposed runway's intemal rate of retum ta eopual the county/s hurdle rate of 20 percent? (Round your intermediete calculetions and finel answer to the nearest whote dollarh) Required information Use the following information to answer questions 4547 [The following information applies to the questions dispilayed below], Washington County's Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter ets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board's decision appear below. In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which cost $180,000 The old snowplow could be sold now for $18,000. The new, larger plow will cost $16,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $94,000 per year in additional tax revenue for the county In analyzing the runway proposa, the board has decided to use a 10 -year time horizon. The county's burdle rate for capital projects is 20 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Problem 16-47 Internal Rate of Return; Sensitivity Analysis (Section 1) (LO 16-1, 16-3) In anaiyzing the runwoy proposal, the board has decided to use a 10 -year time honizon. The county's hurdle rate for capital projects is 20 percent. The County Board of Representatives believes that if the county conducts a promotional effor costing $28,000 per year, the proposed long runway will result in substantialy greater economic develapment than was projected originally. However, the board is uncertain about the actual increase in county tax revenue that will result. Required: Suppose the board builds the long runway and conduct the promotional canpaign. What would the increase in the county's annual tax-evenue need to be in order for the proposed runway's intemal rate of retum ta eopual the county/s hurdle rate of 20 percent? (Round your intermediete calculetions and finel answer to the nearest whote dollarh)