The following information relates to the Thomas Taylor Company. Date Ending Inventory (End-of-Year Prices) Price Index December 31, 2016 $ 65,200 100 December 31, 2017 106,560 120 December 31, 2018 114,444 132 December 31, 2019 130,287 137 December 31, 2020 122,980 143 Use the dollar-value LIFO method to compute the ending inventory for Taylor Company for 2016 through 2020.
Ending Inventory
2016 $
2017 $
2018 $
2019 $
2020 $

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.