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The chief ranger of the state's Department of Natural Resources is considering a new plan for ghting forest res in the state's forest lands. The

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The chief ranger of the state's Department of Natural Resources is considering a new plan for ghting forest res in the state's forest lands. The current plan uses eight fire-control stations, which are scattered throughout the interior of the state forest. Each station has a four-person staff, whose annual compensation totals $240,000. lEither costs of operating each base amount to $140,000 per year. The equipment at each base has a current salvage value of $160,000. The buildings at these interior stations have no other use. To demolish them would oost $14,000 each. The chief ranger is considering an alternative plan, which involves four fire-control stations located on the perimeter of the state forest. Each station would require a six-person staff, with annual oompensation costs of $340,000. Other operating costs would be $150,000 per base. Building each perimeter station would cost $240,000. The perimeter bases would need helicopters and other equipment oosting $540,000 per station. Half of the equipment from the interior stations could be used at the perimeter stations. Therefore. only half of the equipment at the interior stations would be sold if the perimeter stations were built The state uses a 10 percent hurdle rate for all capital projects. Use Appendix A for your reference. [Use appropriate factorts} from the tables provided.) Required: 1. Use the total-cost approach to prepare a net-presentvalue analysis of the chief ranger's two re-control plans. [Assume that the interior fire-control stations will be demolished if the perimeter plan is selected. The chief ranger has decided to use a 10year time period for the analysis.) [Round your 'Discount factors\" to 3 decimal places. Negative amounts should be indicated by a minus sign.) NP'MIr of Interior FireControl Stations NW of Perimeter Fire-Control Stations Difference in NW Costs

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