Jones Excavation Company is planning an investment of $245,300 for a bulldozer. The bulldozer is expected to operate for 2,000 hours per year for 10 years. Customers will be charged $110 per hour for bulldozer work. The bulldozer operator costs $32 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 $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 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 Question Content Area a. Determine the equal annual net cash flows from operating the bulldozer. blank Jones Excavation Company Equal Annual Net Cash Flows Line Item Description Amount Amount Amount Cash inflows: Hours of operation $Revenue per hour $Revenue per year Cash outflows: Hours of operation $Fuel cost per hour Labor cost per hour $Total fuel and labor costs per hour Fuel and labor costs per year Maintenance costs per year $Annual net cash flows Feedback Area Feedback a. Subtract the operating expenses (hourly fuel and labor costs, multiplied by the operating hours, plus the annual maintenance costs) from the revenues (operating hours multiplied by the hourly revenue). Question Content Area 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 $1 table above. Round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. Line Item Description Amount Present value of annual net cash flows fill in the blank 1 of 4$ Amount to be invested fill in the blank 2 of 4 Net present value fill in the blank 3 of 4$ 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 nearest whole number.