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Jones Excavation Company is planning an investment of $236,100 for a bulldozer. The bulldozer is expected to operate for 2,000 hours per year for 6
Jones Excavation Company is planning an investment of $236,100 for a bulldozer. The bulldozer is expected to operate for 2,000 hours per year for 6 years. Customers will be charged $125 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 $20,000. The bulldozer uses fuel that is expected to cost $48 per hour of bulldozer operation. a. Determine the equal annual net cash flows from operating the bulldozer. c. Should Jones 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 final answer to the whole number. hours
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