Planning enables organizations to set goals and to formulate operational plans to achieve those goals. This activity is important because, as a manager, you will spend a great deal of time planning. The goal of this exercise is to challenge your knowledge of the various types of standing plans and single-use plans. A encompasses a wide range of activities or projects. A designates a specific required action. A outlines a set responses to particular circumstances. A plan is used for activities that are not likely to be repeated again. A has less complexity and scope than a programA plan is best for activities that occur over and over again. A gives a general idea of how to respond to a designated situation. The choices are: layout, framework, schedule, mission, program, rule, standing, single-use, policy, project, scheme, procedure

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.