The chlef ranger of the state's Department of Natural Resources is considering a new plan for fighting forest fires 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 $320,000. Other costs of operating each base amount to $220,000 per year. The equipment at each base has a current salvage value of $240,000. The buildings at these Interlor stations have no other use. To demolish them would cost $22,000 each. The chief ranger Is consldering an alternative plan, which Involves four fire-control stations located on the perimeter of the state forest. Each statlon would require a slx-person staff, with annual compensation costs of $420,000. Other operating costs would be $230,000 per base. Bullding each perlmeter station would cost $320,000. The perimeter bases would need hellcopters and other equipment costing $620,000 per station. Half of the equipment from the Interlor statlons could be used at the perlmeter stations. Therefore, only half of the equlpment at the Interlor stations would be sold if the perlmeter stations were bullt. The state uses a 10 percent hurdle rate for all capltal projects. The chlef ranger has decided to use a 10-year time perlod for the analysis Use Appendix A for your reference. (Use approprlate factor(s) from the tables provided.) Requlred 1. Use the Incremental-cost approach to prepare a net-present-value analysis of the chief ranger's decislon between the Interlor fire- control plan and the perimeter fire-control plan. (Round your "Discount factors" to 3 declmal places. Negative amounts should be Indicated by e minus sign.) t value Interior stations/Perimeter stations