\fwasnlngton county's board or Representatives IS conSIderIng the construction or a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuterjets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board's decision appear below. Cost of acquiring additional land for runway $ 75,500 Cost of runway construction 211,030 Cost of extending perimeter fence 31,545 Cost of runway lights 42,350 Annual cost of maintaining new runway 30,200 Annual incremental revenue from landing fees 43,080 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 $111,000. The old snowplow could be sold now for $10,550. The new, larger plow will cost $13,100 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the majorjet 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 $75,220 per year in additional tax revenue for the county. In analyzing the runway proposal, the board has decided to use a 10year time horizon. The county's hurdle rate for capital projects is 12 percent. Use Appendix A for your reference. Note: Use appropriate factor(s) from the tables provided. Required: 1. Prepare a net-presentvalue analysis ofthe proposed long runway. 2. Should the County Board of Representatives approve the runway considering NPV? 3. Which of the data used in the analysis are likely to be most uncertain? Which are likely to be least uncertain? Required 1 Required 2 Required 3 Prepare a net-present-value analysis of the proposed long runway. Note: Round your "Annuity discount factor" to 3 decimal places. Amounts to be deducted should be indicated by a minus sign. Annual incremental benefit Annuity discount factor Present value of annual benefits Initial costs: Net present value Required 1 Required 2 Required 3 Which of the data used in the analysis are likely to be most uncertain? Which are likely to be least uncertain? Note: Select "Yes" if the data used in the analysis are likely to be most uncertain, and "No" if they are likely to be least uncertain. Cost of acquiring land Annual cost of maintaining new runway Annual incremental revenue from landing fees Cost of new snow plow - Cost of runway lights Annual additional tax revenue Salvage value of old snow plow