A highway department is considering building a temporary bridgeto cut travel time during the three years it will take to build a permanent bridge. The temporary bridge can be put up immediately at a cost of $740,000. At the end of three years, it would beremoved and the steel would be sold for scrap. The real net costs of this would be $81,000.Based on estimated time savings and wage rates, fuel savings, and reductions in risks ofaccidents, department analysts predict that the benefits in real dollars would be $275,000 duringthe first year, $295,000 during the second year, and $315,000 during the third year. Departmental regulations require use of a real discount rate of 4 percent.
a) Calculate the net present value assuming that the benefits are realized at the end of eachof the three years.
b) Calculate the net present value assuming that the benefits are realized at the beginning ofeach of the three years.
c) Calculate the net present value assuming that the benefits are realized in the middle ofeach of the three years.
d) Calculate the net present value assuming that half of each year’s benefits are realized atthe beginning of each of the three years and the other half at the end of the year.
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.Read more
The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.Read more
The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.Read more
By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.Read more