Question $2)$ The Murphy County Fire Department is considering two options for upgrading its aging physical

facilities. Plan A involves remodeling the fire stations on Alameda Avenue and Trowbridge Boulevard that

are $57$ and $61$ years old, respectively. $($The industry standard is about $50$ years of use for a station.$)$ The

cost for remodeling the Alameda station is estimated at $$952,000$ while the cost of redoing the Trowbridge

station is $$1\mathrm{.}3$ million. Plan B calls for buying $5$ acres of land somewhere between the two stations, building

a new fire station, and selling the land and structures at the previous sites. The cost of land in that area is

estimated to be $$366,000$ per acre. The size of the new fire station would be $9000$ square feet with a

construction cost of $$151\mathrm{.}18$ per square foot. Contractor fees for overhead, profit, etc., are expected to be

$$340,000,$ and architect fees will be $$81,500.($Assume all of the costs for plan B occur at time $0.)$ If plan A

is adopted, the extra cost for personnel and equipment will be $$126,000$ per year for $50$ years. Under plan

B$,$ the sale of the old sites is anticipated to net a positive $$500,000$ five years in the future. Use an interest

rate of $6\%$ per year and a $50-$ year useful life for the remodeled and new stations to determine which plan

is better on the basis of a present worth analysis.