Briggs Excavation Company is planning an investment of $684,100 for a bulldozer. The bulldozer is expected to operate for 3,000 hours per year for eight years. Customers will be charged $140 per hour for bulldozer work. The bulldozer operator costs $37 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $30,000. The bulldozer uses fuel that is expected to cost $48 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 098bca010f85fc1_2
		$fill in the blank 098bca010f85fc1_4
			$fill in the blank 098bca010f85fc1_6
Cash outflows:
		fill in the blank 098bca010f85fc1_8
	$fill in the blank 098bca010f85fc1_10
	fill in the blank 098bca010f85fc1_12
		$fill in the blank 098bca010f85fc1_14
			fill in the blank 098bca010f85fc1_16
			fill in the blank 098bca010f85fc1_18
			$fill in the blank 098bca010f85fc1_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 annuityof $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 4ba2e9046fb507b_1
Amount to be invested	$fill in the blank 4ba2e9046fb507b_2
Net present value	$fill in the blank 4ba2e9046fb507b_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. ____hours