Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $1.7 million to build and $175,000 per year to maintain. Design 1B will cost $3.6 million to build and $40,000 per year to maintain. Both designs are assumed to be permanent. Use an AW-based rate of return equation to determine (a) the breakeven ROR and (b) which design is preferred at an MARR of 25% per year.
Answers
Answer and Explanation:
A. Given that Design 1A will cost $1.7 million to build and $175,000 per year to maintain
Given that Design 1B will cost $3.6 million to build and $40,000 per year to maintain
Both designs are assumed to be permanent
To find ROR using AW based rate of return equation, we find present value of each design and equate them:
Each design is permanent so
Present value of perpetuity:
Design 1A= 1700000+175000/r
Design 1B = 3600000+40000/r
=1700000+175000/r=3600000+40000/r
135000/r=1900000
Cross multiply
r=135000/1900000
r= 0.0710
r=7.10%
B Given that ROR=7.10% and MARR is 25%
MARR>ROR
Hence we reject both designs
Related Questions
The Adept Co. is analyzing a proposed project. The company expects to sell 3,500 units, give or take 10 percent. The expected variable cost per unit is $7 and the expected fixed costs are $12,500. Cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $6,000. The sale price is estimated at $15 a unit, give or take 2 percent. The company bases their sensitivity analysis on the expected case scenario. What is the sales revenue under the optimistic case scenario?
a. $54,880.
b. $50,000.
c. $58,905.
d. $53,120.
e. $54,000.
Answers
Answer:
c. $58,905.
Explanation:
The computation of the sales revenue is shown below:
optimistic scenario revenue = optimistic unit sold × optimistic price
where,
optimistic unit sold = 3500 × 110%
= $3,850
optimistic price = 15 × 102%
= 15.3
So, the Optimistic revenue is
= 3850 × 15.3
= $58,905
Hence, the option c is correct
On June 15, 2021, Allen sold land held for investment to Stan for $65,000 and an installment note of $300,000 payable in five equal annual installments beginning on June 15, 2022, plus interest at 10%. Allen’s basis in the land is $255,500. What amount of gain is recognized in 2021 under the installment method?
Answers
Using the installment method means that the amount of gain that will be recognized in 2021 is $27,857.14.
How to use the installment method to find gain recognized?When a payment is to be made in installments, then the gain to be recognized in a year can be found by the installment method:
= Profit margin x Amount paid in 2021
The Profit margin can be found by the formula:
= ( Selling price of land - Seller's basis in the land) / Seller's basis in the land
= ( ( 300, 000 + 65, 000) - 255, 500) ) / 255, 500
= 109, 500 / 255, 500
= 42. 857 %
The gain to be recognized on the land sold by Allen to Stan is therefore:
= 42. 857 % x $ 65, 000
= $27,857.14
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Which person would suffer the most from inflation?
Group of answer choices
Brittany is a high school senior who has been saving money for all of her senior activities.
Braxton is approaching retirement but continues to work full-time.
Coach Hirsh invests in gold and sees the value of it go up by about 7% year to year.
Gertrude is a retired 80-year old woman living on a fixed income.
Answers
The person that would suffer from inflation is coach Hirsh who invests in gold and later sees the value goes up by 7% year to year. Thus option C is correct.
What is inflation?Inflation is the general rise of prices and directly affects the economy of goods and services. As the general process of the currency rises there is a production in the purchasing capacity.
Inflation can be measured by the inflation rate which is the general price index. Thus Coach Hirsh will suffer most form the inflation due to his loss in investment as value goes up.
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The level of analysis for the Industry environment is the _____ level:
Answers
c) “Shadow price is the increase in value created by having one additional unit of a limiting resource at original cost”. Provide a comprehensive real world example of where a shadow price can be calculated with multiple limiting factors and with more than one product. Your answer should be in a form of a short case study roughly 4 or 5 sentences. (5 marks)
Answers
A real world example of shadow pricing would be in a case where a manufacturer produces two product A and B with 2 input such as raw materials and labor.
How is this so?Two products (A & B) are produced through the use of two primary resources: labor & raw materials. To produce one unit of product A, we require roughly an hour's worth (60 minutes) of work time from our available pool.
Also, approximately two pounds worth of our current stockpile must be incorporated into each instance as well. Comparatively speaking, producing one unit from group B takes almost three times that much effort (3 hours' time), but only requires about half as much by weight (a single pound).
Our maximum allowance stands at exactly 60 work-hours across all levels plus another hundred pounds maximum in terms concerning these earthly elements - with that established pricing amounts to a flat rate where five dollars buys us one metric pound whereas ten dollars goes towards hourly wages; so what is their shadow price?
When dealing with limited input availability, the optimal allocation of resources and production process optimization can be achieved using shadow prices. In this regard, it has been determined that labor's shadow price stands at $10 per hour while the shadow price for raw materials is set at $5 per pound.
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why do people form group is forming a group accidental or spontaneous?
Answers
Investors who prefer gains through appreciation will generally prefer a ___________ dividend payout ratio.
Answers
Investors who prefer gains through appreciation will generally prefer a measure of dividend payout ratio.
What is dividend payout ratio?The Dividend Payout Ratio (DPR) can be described as the amount of dividends that is been paid to shareholders in relation to the total amount of net income the company generates.
It should be noted that the investors do like to gains through appreciation and it will be a measure of dividend payout ratio, hence the use of the ratio is very important in the firms.
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If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?
Answers
Answer:
a 1% decrease in price
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
Unit elastic demand = percentage change in quantity demanded / percentage change in price = 1
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
It follows that if price increases by 1%, quantity demanded would fall by 1% since demand is unit elastic
At the end of the day, the cash register tape shows $1060 in cash sales, but the count of cash in the register is $1085. The proper entry to account for this excess is:
Answers
Answer:
Debit Cash $1085; credit Sales $1060;
Explanation:
credit Cash Over and Short $25.
While she was travelling, Zainab took advantage of the convenience of cash withdrawals on her credit card since her Canadian debit card wasn’t accepted in the country she was in. According to her travel budget she withdrew $175 every day for food, activities and shopping for 21 days.
When she got home, on the 21st day, she checked her credit card bill on-line and it showed that she had been charged interest already even though her payment wasn’t past due. It turns out that interest is compounded daily on cash withdrawals, from the day the cash is withdrawn
If the interest rate on cash withdrawals is 28%, what was her total bill when she got home?
What would be the total interest paid?
Answers
1. Zainab's total bill when she got home will be $3,703.33.
2. The total interest paid is $28.33.
What is a credit card?A credit card is a payment card that enables the cardholder to make purchases charged to a line of credit instead of the account holder's cash deposits. The credit card account accrues interest periodically (most ideally, daily) and payment may be required each month to offset the balance.
What is Future Value?The future value is the amount that will be due on an investment or payment after compounding interest for a future date. The future value can be computed with the formula below.
FV = PV(1+r)^n
Where:
FV = future value
PV = present value
r = annual interest rate
n = number of periods interest held
The future value can also be calculated using an online finance calculator as follows:
Data and Calculations:Annual interest rate = 28%
Daily interest rate = 0.0767 (28%/365)
N (# of periods) = 21 days
I/Y (Interest per year) = 28%
PV (Present Value) = $0
PMT (Periodic Payment) = $175
P/Y (# of periods per year) = 365 days
C/Y (# of times interest compound per year) = 365 days
Results:
FV = $3,703.33
Sum of all periodic payments = $3,675.00 ($175 x 21)
Total Interest = $28.33
Thus, Zainab's total bill is $3,703.33 with an interest of $28.33.
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Assignment I: Case 2
You have served three years as head of your state's
human services agency. In general, your relationship wit
the governor has been quite good, and your relationshi
with the legislature (which is dominated by the
governor's party) has been congenial as well. Recently,
however, there has been a move in the legislature to
reduce funding for a child-care program you think is
essential to finding and maintaining employment for
women on welfare. What would you do?
Answers
Since my relationship with the governor has been quite good, I will first talk to him about the issue and then also put it in writing to him. I will talk to him about me sending a proposal to the legislature on the reason why the reduction of funding for a child-care program should not be implemented and he should use his good office to influence the legislature so that when it is time to decide, all will be in favor of not cutting down on the funds.
I will also state the reason why it is good see and keep employment for women on welfare.
The act of getting or providing finance for a transaction or business is referred to as financing. Money supplied, particularly by a government or organization, for a specific purpose is referred to as funding.
Child Care Program refers to a single facility, a collection of facilities, or both that are run by a single owner or are under the supervision of a single organization.
Funding is to contribute funds in order to support a project, activity, or group: For example My journey to Canada will be paid for by the LIMA corporation. Any regulated structure that offers education and care to children from birth until the start of compulsory primary school is referred to as early childhood education and care.
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Question 10 of 10
How do values play a role in planning a career?
Answers
Career values are crucial since they can help define the parameters for your personal fulfillment and professional success. You may be intentional in your employment search and utilize your values to build your future by recognizing your own values and what matters most to you.
What are values in career planning?Work values, also known as career values, are the personal ideas, drives, and beliefs that guide you in determining what matters most to you in your professional life. Your drive to work and your overall success at work are both influenced by them.
Our actions, relationships, and lives as a whole are influenced by our own values. In addition to helping us make important decisions, our beliefs can affect how we develop personally. Knowing your values will help you make decisions about your profession, relationships with others, and interests that are most important to you.
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The US Senate overwhelmingly passed the 2022 Defense Authorization Act. The $768 billion "Defense Authorization Act" not only exceeds the defense spending proposed by the Biden administration by $25 billion, but also increases the US defense budget by about 5% compared to last year.
Answers
The US Senate passed the 2022 Defense Authorization Act, a $768 billion bill that surpasses the Biden administration's defense spending proposal by $25 billion and represents a 5% increase in the US defense budget compared to the previous year.
1. The US Senate passed the 2022 Defense Authorization Act.
2. The Defense Authorization Act is a bill that determines the budget and expenditures for the US defense sector.
3. The total amount allocated for the Defense Authorization Act is $768 billion.
4. The defense spending proposed by the Biden administration was exceeded by $25 billion in this Act.
5. The Act represents a 5% increase in the US defense budget when compared to the previous year.
6. This increase in the defense budget indicates a commitment to strengthening the country's defense capabilities.
7. The Act was passed overwhelmingly, indicating strong support from the Senate.
8. The Defense Authorization Act is an essential piece of legislation that ensures the funding and resources necessary for the US military to carry out its operations effectively.
9. The Act covers various aspects of defense spending, including military personnel, equipment, research and development, and strategic initiatives.
10. By passing the Defense Authorization Act, the US Senate has demonstrated its commitment to national security and defense preparedness.
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Please help me to solve this question.
Answers
Answer:
the reproduction in which fertilization takes place is called sexual reproduction.ii . multiple fission
hope it is helpful to you
A stock index has a value of 1,200, an anticipated dividend of $40.50, and a risk-free rate of 4%. What should be the value of one futures contract on the index? (Round your answer to 2 decimal places.)
Answers
Answer:
F = 1500*(1+.0575) - 62; F = 1524.25
Explanation:
Question 2 (1 point)
Alise works for a life insurance company as a claims agent. She processes insurance
payments for the families of recently deceased persons. What quality might Alise
find helpful in her career?
being artistic and enjoying performing
Opreferring to work with wildlife
liking to create things with her hands
being kind and a good listener
Answers
If the policyholder makes the requisite premium payments, the insurer is obligated to pay the death benefit upon the insured's passing. Premium amounts are influenced, in part, by the likelihood that the insured will pass away before the policy's death benefit is paid by the insurer.
Why do life insurance providers inquire as to whether you have other insurance?Your final life insurance prices will be based on these since the insurers want to know how dangerous you are to insure.
If everyone passes away, how do life insurance companies make money?When a policyholder passes away, the company invests these premiums and utilizes the proceeds to pay claims to the beneficiaries of the policy. The interest and dividends received on the investments made with premiums generate income for the company as well.
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The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009.
Prices and Quantities
Year
2008
2009
2010
2011
Price of A Box Boxes of
of Chocolates
Chocolates
$4
$5
$5
$6
100
90
100
80
Price of
Watches.
$50
$50
$60
$65.
Quantity of
Watches
10
15
15
12
Refer to Table 23-6. What was the inflation rate for 2011? Show your work.
Answers
Answer:
Explanation: chocalates 390
prices of watched 225
quantity of watches is 52
390+225+52 = 667
After creating a business plan, what is the next step for starting a business?
A. Opening up shop for business
B. Getting funding for the business
C. Implementing a business structure
D. Deciding what business to start
- PREVIOUS
NEXT >
Answers
Answer: B
Explanation: you have to have a fund when starting a business it’s what gets you pretty much everything.
After creating a business plan, the next step for starting a business is Getting funding for the business. The appropriate response is option B.
What is a business plan?The operational and financial goals of a business are outlined in a business plan. It is a company's success road map, complete with specific plans and finances outlining how the goals will be achieved.
A business plan is used to govern an organization by outlining goals, the methods for achieving them, and the deadlines for doing so. The strategy will also aid in summarizing the goals, objectives, and purpose of the company.
Start measuring and testing your assumptions. Your strategy hasn't been tried yet and is only an idea. You must now assess how well your business plan performs in practice. Start looking for measurable, actionable items.
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Using activity-based costing to make decisions
Dino Dog Collars uses activity-based costing. Dino's system has the following features:
Predetermined Overhead
Activity
Allocation Base
Allocation Rate
Purchasing Number of purchase orders $ 65.00 per purchase order
Assembling Number of parts
0.36 per part
Packaging Number of finished collars
0.25 per collar
Each collar has four parts, direct materials cost is $9.00 per collar, and direct labor cost
is $4.00 per collar. Suppose Animal Hut has asked for a bid on 25,000 dog collars. Dino
will issue a total of 150 purchase orders if Animal Hut accepts Dino's bid.
Requirements
1. Compute the total estimated cost Dino will incur to purchase the needed materials
and then assemble and package 25,000 dog collars. Also compute the cost per collar.
2. For bidding, Dino adds a 40% markup to total cost. What total price will the
company bid for the entire Animal Hut order?
3. Suppose that instead of an ABC system, Dino has a traditional product costing
system that allocates indirect costs at the rate of $9.60 per direct labor hour. The dog
collar order will require 12,000 direct labor hours. What total price will Dino bid using
this system's total cost?
4. Use your answers to Requirements 2 and 3 to explain how ABC can help Dino
make a better decision about the bid price it will offer Animal Hut.
Answers
Dino Dog Collars calculates the cost of producing 25,000 dog collars using activity-based costing. The total estimated cost, cost per collar, and bid price are calculated with a 40% markup.
What is the importance of ABC to management decision making?ABC is an accounting methodology that assigns indirect costs to products or services based on the activities that generate those costs. Unlike traditional costing methods, which allocate indirect costs based on a single cost driver, ABC allocates costs based on multiple cost drivers, providing a more accurate picture of a product's or service's true cost. ABC's value to management decision making stems from its ability to provide more accurate and relevant cost information. Managers can use ABC to determine which activities are causing costs, where inefficiencies exist, and how to optimise processes to reduce costs and increase profitability. ABC assists managers in making informed pricing decisions by providing a better understanding of the true cost of products and services.
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What is approximate debt of the United States right now
Answers
Answer:
$27 trillion.
Explanation:
Effective business communication includes__
thinking before acting
using formal language with acronyms
anticipating questions from the audience
avoiding clichés
Answers
Thinking before acting
Answer:
thinking before acting,
avoiding clichés ,
using formal language with acronyms
Explanation:
Which situation is an example of indirect taxation?
OA. Stores charge sales tax on each purchase and give that money to
the government.
OB. Homeowners must pay a percentage of their home's worth to the
government.
OC. Businesses must send a portion of their income each year to the
government.
OD. Every citizen sends the government money to support the armed
forces.
SUBMIT
Answers
Option A is the correct answer. Indirect taxation is the situation where taxes are imposed on products or services and not directly on individuals. Therefore, the example of indirect taxation in the situation given is when stores charge sales tax on each purchase and give that money to the government.
Stores charge sales tax on each purchase and give that money to the government is an example of indirect taxation.Indirect taxation is a method of taxation in which individuals are not taxed directly, but instead, the tax is paid through an intermediary.
The tax is generally imposed on products or services. This tax, which is passed on to the customer as part of the price of the good or service, is then collected by the seller and forwarded to the government.
Sales tax, excise tax, and customs duty are all examples of indirect taxes.
Therefore, Option A is the correct answer.
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What was Indiana's total government expenditures in fiscal year 2018-2019? (1 point)
O $15.9 billion
O $11.9 billion
O$34.89 billion
O $34.11 billion
Answers
Indiana's total government expenditures in the fiscal year 2018-2019 is $34.89 billion. The correct option is C.
Public consumption, public investment, and transfer payments made up of capital transfers and income transfers (pensions, social benefits), collectively referred to as government expenditures, are all included in the definition of goods and services.
Fiscal policy is characterized as the strategy used by the government to carry out various economic policy goals through the use of taxation, public expenditure, and public borrowing.
Thus, the ideal selection is option C.
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Select the correct text in the passage.
Read the following paragraph and determine which components highlight the purpose of personal protective equipment.
The food service manager of the restaurant San Lucas requests permission from the owner to buy personal protective equipment for some of the
kitchen staff. The owner comments that it is a good idea. She thinks that personal protective equipment would help the kitchen staff feel happier at
work. The staff would also look more professional when working in the open kitchen. The food service manager added that the personal protective
equipment would keep the employees safer, especially when working with extreme temperature items. He also informed the owner that the equipment
would allow the restaurant to comply with the latest government regulations on food service operations.
Reset
Next
Answers
The purpose of personal protective equipmentis that the personal protective equipment would keep the employees safer, especially when working with extreme temperature items.
What is personal protective equipment?Personal protective equipment can be described as the meausres that can help to prevent the employee from danger in broader sense oit can be described as the items such as gloves, safety glasses and shoes, earplugs or muffs, hard hats, as well as full body suits that can be used to ensure proper safety with theuse of personal protective equipment.
In conclusion, from the paragraph it can be seen that purpose of personal protective equipment is one that would keep the employees safer, especially when working with extreme temperature items which is the components that highlight the purpose of personal protective equipment.
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Based on systems characteristics, identify any component (substructure) in the organization and describe its objective, the activity currently the component is performing (in relation to services it is rendering and/or contributing towards the production of goods/products)
Answers
The substructure in the organization is the functional organizational structure which help in structuring the workers.
What is the purpose of functional organizational structure?A functional organizational structure serves as the structure that help to organize the workers in the organization and this is usually done by grouping specific skills and knowledge.
And this structure ,it is usually easy to maintain good production of goods/products, because it will help employees to be assigned to one product or service.
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Which challenge leads to development of incorrect features and functionalities in IS?
A.
end user resistance
B.
quality issues
C.
lack of documentation
D.
project completion constraints
Answers
Answer:D
Explanation:
In the role, managers focus on relationships with subordinates, including motivation, communication, and influence.
O figurehead
O leader
O disseminator
O spokesperson
Answers
In the leader role, managers focus on relationships with subordinates, including motivation, communication, and influence.
What Is The Role Of Leader?
A leadership position requires you to successfully and ethically manage a situation, a team, or an entire organisation. Leaders are capable of influencing and directing their team towards a common goal. Additionally, they are in charge of fostering and preserving employee morale, assisting staff in realising their full potential, and encouraging loyalty. As a leader, it's critical that you have effective communication skills. You could need to communicate with a variety of people in your role as a leader, including your team members, subordinates, clients, and suppliers.
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if the government purchases multiplier is 4.5 and a change in government spending leads to a $18.5 million decrease in aggregate demand, we can conclude that
Answers
Given the government purchases multiplier and the change in government spending, we can conclude that the government reduced purchasing by $4.11 million.
What does the government purchases multiplier show?The government purchases multiplier is used to determine how much aggregate demand will change if there is a change in government spending.
The formula from which to get the government purchases multiplier is:
Change in aggregate demand = Government purchases multiplier x Change in government purchases
If the government purchases multiplier is 4.5 and the change in aggregate demand is - $18.5 million, then the change in government purchases is:
= - 18.5 million / 4.5
= - $4.11 million
This is a decrease in government purchases.
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a. What is the meaning of office procedure?
Answers
Answer:
Meaning of Office Procedure
Office procedure is a set of rules or policies guiding the operations of an office. Office procedures set the standard for how staff work together in the office.
Explanation:
Answer:
Office procedure is the set of rules regarding the operations in an office.
The brand changes form part of a strategic plan the group conceived in September last year called Ekuseni (the Zulu word for “dawn”)”
“Pick n Pay and its new CEO are taking the fight to competitors in a strategy..”
“Pick n Pay yesterday launched a new strategic plan…”
Evaluate the proposed strategy that Pick n Pay is planning to implement, including in your evaluation, the potential risks attached to the proposed new strategy
Answers
Pick n Pay's proposed strategy, known as Ekuseni, aims to implement changes in their brand and take the fight to competitors. The strategy, conceived in September last year, focuses on strategic planning and was launched recently. While the strategy holds potential for success, there are risks associated with its implementation.
1. Pick n Pay's proposed strategy, called Ekuseni, includes changes to their brand and a competitive approach to rivals. This strategic plan was conceived in September last year, with the term Ekuseni referring to "dawn" in Zulu.
2. The strategy aims to revamp the brand image and position Pick n Pay as a strong competitor in the market. By taking the fight to competitors, the company intends to gain a competitive edge and attract more customers.
3. The launch of the new strategic plan indicates that Pick n Pay is committed to implementing this strategy and achieving its goals. It demonstrates the company's intention to adapt and stay relevant in the evolving market.
4. However, like any strategic plan, there are potential risks associated with its implementation. These risks include customer resistance to changes in the brand, increased competition from rivals, and potential financial strains due to the cost of rebranding and marketing efforts.
5. Customer resistance is a common risk when brands undergo significant changes. If the proposed strategy doesn't resonate with Pick n Pay's target market, it could lead to a decline in customer loyalty and affect sales.
6. Additionally, taking the fight to competitors may trigger retaliatory actions from rival companies. This could result in intensified competition, price wars, and potential market share loss for Pick n Pay.
7. Finally, implementing a new strategic plan involves financial investments. The cost of rebranding, marketing campaigns, and operational changes may strain the company's resources, potentially impacting its financial stability.
In conclusion, while Pick n Pay's proposed strategy holds promise for the company's growth and competitiveness, there are risks involved. Proper planning, market research, and effective execution will be crucial to mitigating these risks and ensuring the success of the strategy.
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