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*inserted better quality pictures held istion Companying to 541.600 for The Bullet for 3,000 per year. Cutomers will be charged 120 hours for the bullet
*inserted better quality pictures
held istion Companying to 541.600 for The Bullet for 3,000 per year. Cutomers will be charged 120 hours for the bullet per hand benefits the experience 50.000 The Present Vahuan Any of Stat Completerest Ver 104 121 15 1 0:43 . 0.623 2 1033 L730 LES 16 1.12 2.43 2.40 2.402 2.300 2.100 3.46 3.170 3.033 2.855 2989 4212 27 3.605 3153 2.991 4917 13 3.75 1326 2 112 400 4.56 4100 3.605 . 20 18 12 1.13 4772 031 10 7.30 5.145 3.650 5019 Derechos de Trousevation Company Ecual Arm Cash Flowe u Iris vation Company Equal Annual Chow 0 i o h. Determine the metrin value of the menting that the desired to return to the water. Reves the read the indicate negative presenta Present alue of annual net cash flow Amount to be mested Net present c. Should win in the builder based on the because the bulldecoti the path of the needs of the d. Determine the number of operating how that the care o als the amount to be und interim condotherm 69% 12 2 Net Present Value Method -- Annuity Briggs Excavation Company is planning an investment of $341,600 for a bulldozer. The bulldozer is expected to operate for 3,000 hours per year for eight years. Customers will be charged $120 per hour for bulldozer work. The bulldozer operator costs $36 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $30,000. The bulldoor uses fuel that is expected to cost $47 per hour of bulldozer operation. Present Value of an Annuity of $1 at Compound Interest Year 10% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.526 1.528 3 2.673 2.487 2.402 2.253 2.106 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 3.755 3.326 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 5.602 5.759 5.328 4.772 4,031 10 7,360 6.145 5.650 5,019 4.192 3. Determine the equal nou net cash flows from operating the bulldozer se minus sign tosind cate cash outflows 7 9 Briggs Excavation Company Equal Annual Net Cash Flows Casino Briggs Excavation Company Equal Annual Net Cash Flows Cashindows Cash outflows: 9 xo b. Determine the net present value of the investment, assuming that the desired rate of return is 15%. Use the sentenhuity of stable above. Round to the earest della truired, use the minussion to indicate a negative net present value Present value of annual net cash flows Amount to be invested 5 Net present value o Cash outflows: DO 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 $1 table above Round to the nearest dollar. If required, use the minus sign to indicate negative net present value Present value of annual net cash flows Amount to be invested .Net present value 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 15 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 finanswer to the nearest whole number hours Step by Step Solution
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