Mr. smith has been hired to manage a swath of land owned by a private company. his goal is to manage the forest in the most sustainable way while still using the land and making a profit. at first, he manages the land using the concept of maximum sustainable yield. after a few years he realizes that ecosystem-based management is more appropriate for this particular swath of land. mr. smith is using .

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.