a. Determine the equal annual net cash flows from operating the bulldozer. Use a minus sign to indicate cash outflows.

b. Determine the net present value of the investment, assuming that the desired rate of return is 10%. Use the present value of an annuity of $1 table above. Round to the nearest dollar. If required, use the minus sign to indicate a negative net present value.

d. Determine the number of operating hours such that the present value of cash flows equals the amount to be invested. Round interim calculations and final

answer to the nearest whole number.

Brigg5 Excavation Company is planning an investment of $110,500 for a bulldozer. The bulldozer is expected to operate for 1,000 hours per year for six ymars. Customers will be charged $125 per hour for bulldozer work. The bullidozer operator costs $38 per hour in wages and benefits. The bulidozer is expected to require annual maintenance costing $10,000. The bulldozer uses fuel that is expected to cost $50 per hour of bulidozer operation. Present Value of an Annuitv of $1 at Compound Interest. a. Doterinine the equal annual net cash flows from operating the buld dorer the a minus slign to iedicate cath outhiows Determine the equal annual net cash flows from operating the buldazec Use a minids sign to indicate cash outflows. b. Determine the net present value of the investment, assuming that the desired rate of return is 109 . Use the present value of an annuity of $1 table abave Round to the nearest dollar. If required, use the minus sign to indicate a nepative net present value. c. Should Biggs Excavation invest in the bulidozer, based on this analysie? 2 bocause the bulldozer cost is the present value of the cash flows at the minimum decired rate of neturn of tora anewon to the nearest whole number: heurs