The president's executive jet is not fully utilized. You judge that its use by other officers would increase direct operating costs by only

$$20,000$ a year and would save $$100,000$ a year in airline bills. On the other hand, you believe that with the increased use the

company will need to replace the jet at the end of three years rather than four. A new jet costs $$1\mathrm{.}1$ million and $($at its current low rate of

use$)$ has a life of six years. Assume that the company does not pay taxes. All cash flows are forecasted in real terms. The real

opportunity cost of capital is $8\%.$

b$.$ Calculate the present value of the additional cost of replacing the jet one year earlier than under its current usage. $($Do not round

intermediate calculations. Enter your answer in dollars not in millions and round your answer to $2$ decimal places. Enter your

answer as a positive value.$)$

c$.$ Calculate the present value of the savings. $($Do not round intermediate calculations. Enter your answer in dollars not in millions

and round your answer to $2$ decimal places.$)$