Required informetion Use the following information to answer Problems 45 - 47 (Algo) [The following information applies to the questions displayed 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 smail commuter jets. 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 will cost $108,000. The old snowplow could be sold now for $10,400. The new, larger plow will cost $12.800 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 $72.160 per year in additional tax revenue for the county. In analyzing the runway proposal, the board has decided to use a 10 -year time honzon. The county's hurdle rate for capital projects is 12 percent. Use Aprendix A for your reference. Note: Use oppropriote factor(s) from the tables provided. PR 16.45 (Algo) Internal Rate of Return; Even Cash Flows (Section 1) (LO 16-1, 16-3) Required: 1. Compute the inital cost of the imvestment in the long rumway. 2. Compute the annual net cost or benefit from the runway. 3-a. Determine the IRR on the proposed long rumway 3-b. Should it be bult considering IRR? Compute the annual net cost or benefit from the runway. [The following information applies to the questions displayed 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 jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic fights. 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 5nowplow, which will cost $108,000 The old snowplow could be sald now for $10,400. The new, larger plow will cost $12.800 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, wall increase economic activity in the commurity. The board projects that the increased economic activity will result in $72160 per year in additional tax revenue for the county. In analyzing the runway proposal, the board has decided to use a 10 -year time horzon. The county's hurdle rate for capital projects is 12 percent. Use Apoendix A for your relerence. Note: Use oppropriote foctor(s) from the tobles provided. PR 16-47 (Algo) Internal Rate of Return; Sensitivity Analysis (Section 1) (LO 16-1, 16-3) In analyzing the nurway proposal, the board has decided to use a 10 -year time horizon. The county's hurdle rate for copital projects is 12 percent. The County Board of Representatives believes that if the county conducts a promotional effort costing $21,200 per year. the proposed long rumway will result in substantially greater economic development than was projected originally, However, the board is uncertain about the actual increase in county tax revenue that will result Required: Suppose the board bulds the long runway and conducts the promotional campaign What would the increase in the county's annual taxievenue need to be in order for the proposed runway's intemal fate of retum to equal the county's hurdie rate of 12 percent? Note: Round your intermediate colculations and final answer to the nearest whole dollor