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 $$730,000.$ At the end of three years, it would be removed and the

steel would be sold for scrap. The cost of disposal is $$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

regulations 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.

b$.$ Calculate the present value of net benefits assuming that the benefits are realized at the

beginning of each of the three years.

c$.$ Calculate the present value of net benefits assuming that half of each year$$s benefits are

realized at the beginning of the year and the other half at the end of the year.

d$.$ Does the temporary bridge pass the net benefits test?