Briggs Excavation Company is planning an investment of $230,900 for a bulldozer. The bulldozer is expected to operate for 1,000 hours per year for five years. Customers will be charged $140 per hour for bulldozer work. The bulldozer operator costs $30 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 $39 per hour of bulldozer operation.

Present Value of an Annuity of $1 at Compound Interest
Year	6%	10%	12%	15%	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	5.328	4.772	4.031
10	7.360	6.145	5.650	5.019	4.192

a. Determine the equal annual net cash flows from operating the bulldozer. Use a minus sign to indicate cash outflows.

Briggs Excavation Company
Equal Annual Net Cash Flow
Cash inflows:
		fill in the blank 086a73f92ff2079_2
		$fill in the blank 086a73f92ff2079_4
			$fill in the blank 086a73f92ff2079_6
Cash outflows:
		fill in the blank 086a73f92ff2079_8
	$fill in the blank 086a73f92ff2079_10
	fill in the blank 086a73f92ff2079_12
		$fill in the blank 086a73f92ff2079_14
			fill in the blank 086a73f92ff2079_16
			fill in the blank 086a73f92ff2079_18
			$fill in the blank 086a73f92ff2079_20

b. Determine the net present value of the investment, assuming that the desired rate of return is 12%. Use the present value of an annuity of $1 table above. Round to the nearest dollar. If required, use the minus sign to indicate a negative net present value.

Present value of annual net cash flows	$fill in the blank 5afec0ff6010fb2_1
Amount to be invested	$fill in the blank 5afec0ff6010fb2_2
Net present value	$fill in the blank 5afec0ff6010fb2_3

c. Should Briggs Excavation invest in the bulldozer, based on this analysis? , because the bulldozer cost is the present value of the cash flows at the minimum desired rate of return of 12%.

d. Determine the number of operating hours such that the present value of cash flows equals the amount to be invested. Round interim calculations and final answer to the nearest whole number. fill in the blank 5afec0ff6010fb2_6 hours