A-D

Jones Excavation Company is planning an investment of $1,253,900 for a bulldozer. The bulldozer is expected to operate for 3,000 hours per year for 7 years Customers will be charged $140 per hour for bulldozer work. The bulldozer operator costs $25 per hour in wages snd benefits. The bullidozer is expected to reoulre annual maintenance costing $30,000. The bulidozer uses fuel that is expected to cost $33 per hour of bulldozer operation. a. Determine the equat annual net cash flows from operating the bulldozer. Jones Excavation Company Equal Annual Net Cash Flows Feedtaok b. Determine the net present volue of the investment, assuming that the desired rate of retum is 6%. Use the present value of an annuty of si tabie above. Round to the nearest dollar. If required, wse the minus sign to indicate a negative net present value. c. Should Jones invest in the bulldorec, based on this analysis? , because the bulidorer cost is the present value of the cash fows at the minimum desired rate of retum of 6%. d. Determine the number of operating hours such that the present value of cash fows equals the amount to be invested. Round interim calculations and final answer to the nearest whole number. hours