Jones Excavation Company is planning an investment of $$827,400$ for a bulldozer. The bulldozer is expected to operate for $3,000$ hours per year for $7$ years. Customers will be charged $$140$ per hour for bulldozer work. The bulldozer operator costs $$28$ per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $$30,000.$ The bulldozer uses fuel that is expected to cost $$37$ per hour of bulldozer operation.

Present Value of an Annuity of $$1$ at Compound Interest

Year $6\%10\%12\%15\%20\%$

$10\mathrm{.}9430\mathrm{.}9090\mathrm{.}8930\mathrm{.}8700\mathrm{.}833$

$21\mathrm{.}8331\mathrm{.}7361\mathrm{.}6901\mathrm{.}6261\mathrm{.}528$

$32\mathrm{.}6732\mathrm{.}4872\mathrm{.}4022\mathrm{.}2832\mathrm{.}106$

$43\mathrm{.}4653\mathrm{.}1703\mathrm{.}0372\mathrm{.}8552\mathrm{.}589$

$54\mathrm{.}2123\mathrm{.}7913\mathrm{.}6053\mathrm{.}3532\mathrm{.}991$

$64\mathrm{.}9174\mathrm{.}3554\mathrm{.}1113\mathrm{.}7853\mathrm{.}326$

$75\mathrm{.}5824\mathrm{.}8684\mathrm{.}5644\mathrm{.}1603\mathrm{.}605$

$86\mathrm{.}2105\mathrm{.}3354\mathrm{.}9684\mathrm{.}4873\mathrm{.}837$

$96\mathrm{.}8025\mathrm{.}7595\mathrm{.}3284\mathrm{.}7724\mathrm{.}031$

$107\mathrm{.}3606\mathrm{.}1455\mathrm{.}6505\mathrm{.}0194\mathrm{.}192$

Question:

Revenue per hour

$\backslash$times $Revenue per hour

$140$

Revenue per year

$Revenue per year

$420,000$

Cash outflows:

Hours of operation

Hours of operation

$3,000$

Fuel cost per hour

$Fuel cost per hour

$37$

Labor cost per hour

Labor cost per hour

$28$

Total fuel and labor costs per hour

$\backslash$times $Total fuel and labor costs per hour

$65$

Fuel and labor costs per year

Fuel and labor costs per year

$195,000$

Maintenance costs per year

Maintenance costs per year

$30,000$

Annual net cash flows

$Annual net cash flows

$195,000$

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Question Content Area

$1.$ 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.

fill in the blank of

hours