A highway department is considering building a temporary bridge to cut travel time during the Oree years it will take to build a permanent bridge. The temporary bridge can be put up in a few weeks at a current cost of $740,000, paid at the beginning of the project. At the end of three years, the temporary bridge would be removed and the steel from the temporary bridge would be sold for scrap at a net cost of removal of $81,000 (net cost of removal includes actual removal costs less any scrap value from post-removal sale of steel). Based on estimated time savings, wage rates, fuel savings, and reductions in risks of accidents throughout an average year, department analysts predict that the benefits in real dollars from the temporary bridge would be $275,000 during the 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 3 percent. a. Calculate the present value of net benefits assuming that the gross benefits are realized at the end of each of the three years. b. Calculate the present value of net benefits assuming that the gross benefits are realized at the beginning of each of the three years. c. Calculate the present value of net benefits assuming that the gross benefits are realized in the middle of each of the three years.d. Does the temporary bridge pass the net benefits test? Why or why not? e. Which method of discounting (a.-c.) would you recommend using to best estimate the benefits and costs of the bridge? Why