Question: Net Present Value Method-Annuity E & T Excavation Company is planning an investment of $186,100 for a bulldozer. The bulldozer is expected to operate for
Net Present Value Method-Annuity E & T Excavation Company is planning an investment of $186,100 for a bulldozer. The bulldozer is expected to operate for 1,000 hours per year for five years Customers will be charged $145 per hour for buildorer work. The buldozer operator costs $32 per hour in wages and benefits. The buldozer is expected to require aneual maintenance cooting $10,000. The bulldozer uses fuel that is expected to cost $42 per hour of buildorer operation Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 17% 1S% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 .328 4.772 4.031 10 7.360 6.145 5.650 5019 4.192 a. Determine the equal annual net cash flows from operating the buldozer. Enter all amounts as positive numbers Cash inflows Hours of operation Revenue per hour Revenue per year Cash outflows Hours of operation Fuel cost per hour Labor cost per hour Total fuel and labor costs per hour Puel and labor costs per year Maintenance costs per year
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