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Jones Excavation Comparis planning an investment of $125,000 for a bule The buildren expected to operate for 1.000 hours per year for live on Cutters

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Jones Excavation Comparis planning an investment of $125,000 for a bule The buildren expected to operate for 1.000 hours per year for live on Cutters will be charged 190 per hour for bulldozer work. The bulldocer tortor costs 530 per hour in wages and benefits. The bulldozer expected to rent maintenance costing 17.500. The bodo sestuel that is expected to cont 515 per hour of buldozer operation Present Value of an Annuity of S1 at Compound Interest Year 109 129 2011 0.70 2 1.520 2100 4 255 2.540 5 4212 4.91 3.170 3.791 4.155 6 2 5.582 6.210 4.566 4.968 5.35 4,487 3.837 002 5:32 4.772 4.03 5.759 5.145 10 7360 5.650 5.015 6102 a. Determine the equal annual net cash flows from operating the bulldozer. Jones Excavation Company Equal Annual Net Cash Flows Cash inflows: Cash outflows: Cash outros b. Determine the net present value of the investment, assuming that the desired rate of return is 10e the table of content or table above Woond to the Det dollar Present Value of annual net shows Amount to be Net presente c. Should invest in the buildor based on the analys because the builder cost the present value of the cast the rimum dened rate or retum 10 d. Determine the number of operating hours such that the present value of cathows equal wount to be invested. Round internations and into the rest while number tour

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