Question: Net Present Value Method Annuity E & T Excavation Company is planning an investment of $147,300 for a bulldozer. The bulldozer is expected to operate



Net Present Value Method Annuity E & T Excavation Company is planning an investment of $147,300 for a bulldozer. The bulldozer is expected to operate for 1,000 hours per year for five years. Customers will be charged $135 per hou for bulldozer work. The bulldozer operator costs $38 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $10,000. The bulldozer uses fuel that is expected to cost $50 per hour of bulldozer operation. Present Value of an Annuity of $1 at Compound Interest 10% 20%o Year 6% 120% 150% 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.528 1.626 2.673 2.487 2.402 2.283 2.106 2.589 3.465 3.170 3.037 2.855 3.352 2.991 4.212 3.791 3.605 4.917 4.355 4.111 3.784 3.326 5.582 4.868 4.564. 4.160 3.605 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 5.019 4.192 10 7.360 6.145 5.650 a. Determine the equal annual net cash flows from operating the bulldozer
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