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A highway department is considering building a temporary bridge to cut travel time during the three years it will take to build a permanent bridge. The temporary bridge can be put up in a few weeks at a cost of $740,000. At the end of three years, it would be removed 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 of accidents, department analysts predict that the benefits in real dollars would be $275,000 during the first year, $295,000 during the second year, and $315,000 during the third year. Departmental regula- tions require use of a real discount rate of 4 percent.
a. Calculate the present value of net benefits assuming that the benefits are realized at the end of each of the three years.
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What was the internal or external pressure that caused the change? Compare the driving force for the change to the specific types of pressures noted in your reading assignments.
Lester and Logan both lived in Texas and were neighbors. Lester had supplied hay to Logan and other neighbors for over thirteen years and Lester was aware that Logan fed the hay to Lester's cattle. On January 1st, Lester delivered 28 bales of hay t..
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Determine the impact of the company's mission, vision, and primary stakeholders on its overall success.Analyze the five (5) forces of competition to determine how they impact the company.Create a SWOT analysis for the company to determine its major s..
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