A city is considering extending the runways of its municipal airport so that commercial jets can use the facility. The land necessary for the runway extension is currently a farmland that can be purchased for $350,000. Construction costs for the runway extension are projected to be $600,000 and the additional annual maintenance costs for the extension are estimated to be $22,500. If the runways are extended, a small terminal will be constructed at a cost of $250,000. The annual operating and maintenance costs for the terminal are estimated at $75,000. Finally, the projected increase in flight will require the addition of two air traffic controllers at an annual cost of $100,000. Annual benefits of the runway extension have been estimated as follows: $325,000 for Rental receipts from airlines leasing space at the facility. $65,000 for Airport tax charged to passengers. $50,000 for Convenience benefit for residents of the city $50,000 for Additional tourism for the city Apply the benefit-cost ratio method with a study period of 20 years and a MARR of 10% per year to determine whether the runway at the city is extended.