The following information is available regarding Lincoln:

a$.$ The Lincoln base was built at a cost of $$100$ million.

b$.$ The operating costs of the base are $$400$ million per year.

c$.$ The base is built on land owned by the Army, so the Army pays nothing for the use of the property. If the base is closed, the land will be sold to developers for $$500$m$.$

d$.$ If the Lincoln base is shut down, the Army will have to transfer some personnel to the Omaha facility. As a result, the yearly operating costs at Omaha will increase by $$100$ million per year.

The following information is available regarding Omaha:

a$.)$ The Omaha base was built at a cost of $$150$ million on land leased by the Army from private citizens. The land and buildings will immediately revert to the owner if the base is closed. If the Omaha facility is closed down, no extra costs will be incurred to operate the Lincoln facility.

b$.)$ The Army can choose to lease the land permanently for a lease payment of $$3$ million per year. The operating costs of the base, excluding the lease payments, are $$300$ million per year.

c$.)$ If it decides to keep the Omaha base open, the Army plans to invest $$60$ million in a fixed income note, which at $5\%$ interest will earn $$3$ million the government needs for the lease payments.

Required:

i$.)$ Which base do you recommend to close? You must quantify your answer.