# E & T Excavation Company is planning an investment of $245,000 for a bulldozer. The bulldozer is

## Question:

(a) Determine the equal annual net cash flows from operating the bulldozer.

(b) Determine the net present value of the investment, assuming that the desired rate of return is 10%. Use the table of present values of an annuity of $1 in the chapter. Round to the nearest dollar.

(c) Should E & T invest in the bulldozer, based on this analysis?

Net Present Value

What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Annuity

An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...

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