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Net Present Value Method Annuity E & T Excavation Company is planning an investment of $849,200 for a bulldozer. The bulldozer is expected to operate
Net Present Value Method Annuity E & T Excavation Company is planning an investment of $849,200 for a bulldozer. The bulldozer is expected to operate for 3,000 hours per year for 10 years. Customers will be charged $135 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 2090 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 1090 1290 0.943 0.909 0.893 1.833 1.736 1.690 2.673 2.487 2.402 1590 0.870 1.626 2.283 3.037 2.855 3.352 3.784 4.160 6.210 5.335 .968 4.487 5.328 4.772 5.019 Year 696 3.465 3.170 3.605 4.917 4.355 .111 5.582 .8684.564 4.212 3.791 8 6.802 5.759 10 7.360 6.145 5.650 a. Determine the equal annual net cash flows from operating the bulldozer
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