Net Present Value MethodAnnuity

E & T Excavation Company is planning an investment of $1,316,300 for a bulldozer. The bulldozer is expected to operate for 4,000 hours per year for 10 years. Customers will be charged $135 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 $40,000. The bulldozer uses fuel that is expected to cost $42 per hour of bulldozer operation.