The chief ranger of the Department of Natural Resources is considering a new plan for fighting bushfires. The current plan uses eight fire control stations, which are scattered throughout the wilderness areas. Each station has a four-person staff, whose annual salaries total $350,000 per station. Other costs of operating each base amount to $250,000 per year. The equipment at each base has a current salvage value of S270,000. The buildings at these stations have no other use. To demolish them would cost $25,000 each The chief ranger's new plan involves four fire control stations, one on the perimeter of each wilderness area. Each station would require a six-person staff, with annual salary costs of $450,000 per station. Other operating costs would be $260,000 per base. Building each perimeter station would cost S350,000. The perimeter bases would need helicopters and other equipment costing $650,000 per station. Half the equipment from the current stations could be used at the perimeter stations. Therefore, only half the equipment at the current stations would be sold if the perimeter stations were built A required rate of return of 10 per cent is used for all capital investment projects. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required 1. Prepare a net present value analysis of the chief ranger's two fire control plans-the current plan and the proposed new plan. Assume that the current fire control stations will be demolished if the perimeter plan is selected. The chief ranger has decided to use a 10-year period for the analysis. (Round your "Discount factors" to 3 decimal places. Negative amounts should be indicated by a minus sign.) NPV of Current Fire Control Stations NPV of Perimeter Fire Control Stations Difference in NPV Costs