Question: Net present value method - annuity Jones Excavation Company is planning an investment of $ 1 0 8 , 7 0 0 for a bulldozer.

 Net present value method - annuity Jones Excavation Company is planning

Net present value method - annuity
Jones Excavation Company is planning an investment of $108,700 for a bulldozer. The bulldozer is expected to operate for 1,000 hours per year for 6 years. Customers will be chargec $115 per hour for bulldozer work. The bulldozer operator costs $35 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 $46 per hour of bulldozer operation.
\table[[Present Value of an Annuity of $1 at Compound Interest],[Year,6%,10%,12%,15%,20%
an investment of $108,700 for a bulldozer. The bulldozer is expected to

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!