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Good evening I am hoping that some one can double check my anwer to the question below? I have included a better to read table as well. The final answer I have $19,471,360.Future Value and Present Value Tables The chie Resources is considering a new plan for fighting forest fires in the states 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 totsls $210,000. Other costs of operating each base amount to $110,000 per yean The equipment at each base has a curent salvage value of $130,000. The buildings at these interior stations have no other use. To demolish them would cost 511.000 each. f ranger of the states Department of Natural The chief ranger is which involves four fire-control stations located on the perimeter of the state forest. Each station would require a six-person staff, with annual costs of $310,000. Other operating costs would be $120,000 per base. Building each perimeter station would cost 5210,000. The perimeter bases would need helicopters and other equipment costing 5510,000 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. The chief ranger has decided to use a 15-- year time period for the analysis. Use Appendix A for your reference. (Use appropriate factor(s) from the tables ^ us m m m m provided.) Required: 1. Use the incremental-cost approach to prepare a net-present-value analysis of the chief rangers control plan and the perimeter fire-control plan. (Roun decimal places. Negative amounts should be indicated by a minus sign.) - a 油桶 媯灦渊峥闹耕廟 rs decision between the interior fire- d your Discount factors to 3 Table Net present value Ineio saions Perimeter tafions

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Step 1 Computation of Incremental Saving/Costs Incremental Current Plan New Plan Particulars Saving/(Cost) Computation [8 x $210000] $1,680,000[4 x $310000 [8 x $110000] Amount Computation Amount Amount $1,240,000 Staff Cost Cost of Operatin Total $880,000 [4 x $120000$480,000 $2,560,000 $440,000 $400,000 $840,000 $1,720,000 Step 2 Computation of Initial Inventment Investment in the initial Year Cost of New Biliding Cost of New Equipment Cost to Demolish the old building Computation Amount [4 x $210000] [4 x $510000] [8 x $11000] $840,000 $2,040,000 $88,000 $2,968,000 ($520,000) $2,448,000 (8 x ($130000/2)] Less: Salvage Value of half old equipment Total Net Investment in New Plan Step 3 Computation of Net Present Value Present Present Particulars Amount Computation Value Factor Value Initial Outflow at Year 0 Present Value of Annual Savings for period 1-15 vears Net Present Value From Table IV-Period 15 and rate 10% is 7.606 1IS2448000 x 1 ($2,448,000) 7.606 [$84000x 27.152 $6,389,040 $3,941,040 ($2,448,000) $840,000 Net Present Value is $3,941,040

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