Help in replacing text with the value of a variable

Input file - tmp

<begin>
./00003/
./00004/
<end>

I would like to replace "." with the value of pwd

so that the output will look like

/dev/project/00003/

t=`pwd`
sed -e "s/\./$t/g" tmp > tmp1;

The above piece of code is not working. Appreciate your help.

t=`pwd`
sed -e 's/\./'${t}'/g' tmp > tmp1;

It is still throwing the error.

sed: 0602-404 Function s/\.//dev/project/g cannot be parsed.

use this

set file name as command line arg

cat $1 | while read line
do
grep "./" $1
if [ $? -eq 0 ]
then
rep=${line/.\//$PWD/}
echo $rep >>tmp1
else
echo $line >>tmp1
fi
done
exit 0

I corrected it on my own with the below code...

t=`pwd`
sed -e "s|\.|$t|g" tmp1 > tmp;

it worked...

Folks, thanks for your responses...