Washington Countys Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the boards decision appear below.

Cost of acquiring additional land for runway	$	63,000
Cost of runway construction		305,000
Cost of extending perimeter fence		19,880
Cost of runway lights		32,000
Annual cost of maintaining new runway		16,000
Annual incremental revenue from landing fees		25,000

In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $115,000. The old snowplow could be sold now for $11,500. The new, larger plow will cost $7,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $76,000 per year in additional tax revenue for the county. In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The countys hurdle rate for capital projects is 12 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.)

Prepare a net-present-value analysis of the proposed long runway. (Round your "Annuity discount factor" to 3 decimal places. Amounts to be deducted should be indicated by a minus sign.)

Additional tax revenue	$76,000
Incremental operating costs for new snow plow
Incremental revenue from landing fees	25,000
Runway maintenance
Annual incremental benefit	$101,000
Annuity discount factor
Present value of annual benefits
Initial costs:
Less: Land acquisition
Less: Runway lights
Less: Runway construction
Add: Salvage value of old snow plow
Net present value	$0