Net Present Value Method - Annuity Jones Excavation Company is planning an investment of $920,600 for a buldozer. The bulldozer is expected to operate for 3,000 hours per year for eight years, Customers will be charged $145 per hour for bulldorer work. The bulldorer operator costs $38 per hour in wages and benefits. The buldozers expected to require annual maintenance costing $30,000 The bulldozer useful that is expected to cost $50 per hour of buldozer operation Present Value of an Annuity of 51 at Compound Interest Year 10% 125 15% 20% 0.943 0.909 0.893 0.870 0.833 2 1.833 2.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2-306 3.465 3.170 3.037 2.555 2.589 5 4.212 3.791 3.605 3353 2.991 6 4.355 4.111 3.785 3326 7 5.582 4.868 4.564 4.160 3 605 6.210 5.335 4.965 4487 3.837 9 5.802 5.759 5.328 4.772 1.033 10 7360 5.650 5019 4192 4 a. Determine the equal annual net cash flows from operating the bulldozer Jones Excavation Company Equal Annual Net Cash Flows Cash inflows: i Cash outflows E b. Determine the net present value of the investment, assuming that the desired rate of return is 6. Use the present value of an annuity of $1 table above. Round to the nearest dollar. If required, the minus sign to indicate a negative net praesent value Present value of annual net cash flows Amount to be invested Net present value Should Jones invest in the borer, based on this analys because the burro the present of the show at the minimum deed rate of return of 6 determine the number of operating hours such that the presents of shows equals the amount to be invested. Round interim callations and final answer to the rest whole number