The management of blue spruce corp. asks your in determining the comparative effects of the fifo and lifo inventory cost flow methods. for 2017, the accounting records show these data. inventory, january 1 (9,520 units) $ 31,416cost of 127,290 units purchased 474,422selling price of 94,700 units sold 723,700operating expenses 113,570units purchased consisted of 35,360 units at $3.50 on may 10; 56,860 units at $3.70 on august 15; and 35,070 units at $4.00 on november 20. income taxes are 26%.prepare comparative condensed income statements for 2017 under fifo and lifo.

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.