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I need parte D please the number of operating hours. Check My Work a. Subtract the operating expenses (hourly fuel and labor costs, multiplied by
I need parte D please the number of operating hours.
Check My Work a. Subtract the operating expenses (hourly fuel and labor costs, multiplied by the operating hours, plus the annual maintenance costs) fro hours multiplied by the hourly revenue). b. Determine the net present value of the investment, assuming that the desired rate of return is 15%. Use the present value of an annuity of $ nearest dollar. If required, use the minus sign to indicate a negative net present value. Present value of annual net cash flows s 262,080 Amount to be invested 272,600 Net present value -10,520 c. Should Jones invest in the bulldozer, based on this analysis? No , because the bulldozer cost is more than the present value of the cash flows at the minimum desired rate of return of 1 d. Determine the number of operating hours such that the present value of cash flows equals the amount to be invested. Round interim calculat nearest whole number. -10,520 X hours Feedback Check My Work b. Multiply the annual net cash flow by the present value of an annuity factor and subtract the amount to be invested. c. Which is more favorable? Check My Work Equal Annual Net Cash Flows Cash inflows: 3,000 Hours of operation X $ 105 Revenue per hour 315,000 Revenue per year Cash outflows: Hours of operation 3,000 42 Fuel cost per hour 32 Labor cost per hour XS 74 Total fuel and labor costs per hour 222,000 Fuel and labor costs per year 30,000 Maintenance costs per year 63,000 Annual net cash flows Feedback Check My Work a. Subtract the operating expenses (hourly fuel and labor costs, multiplied by the operating hours, plus the annual maintenance hours multiplied by the hourly revenue). Net Present Value Method-Annuity Jones Excavation Company is planning an investment of $272,600 for a bulldozer. The bulldozer is expected to operate for 3,000 hours per year for seven y will be charged $105 per hour for bulldozer work. The bulldozer operator costs $32 per hour in wages and benefits. The bulldozer is expected to require an costing $30,000. The bulldozer uses fuel that is expected to cost $42 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 00 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. Jones Excavation Company Fanal Annual Net Cash Flows Check My Work PreviousStep by Step Solution
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