Question 2: (10 marks) A road agency 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 sold for scrap at a net cost of $81,000, estimated as the net cost of a similar operation done today. Based on an estimated time savings and wage rates, fuel savings, and reduction in risks of crashes, agency 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. Agency regulations require use of a real discount rate of 6%. a. Calculate the present value of net benefits assuming that the benefits are realised at the end of each of the three years. b. Calculate the present value of net benefits assuming that the benefits are realised 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 realised 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? Please explain