Net Present Value Method --Annuity Jones Excavation Company is planning an investment of $125,000 for a bulldozer. The bulldozer is expected to operate for 1,000 hours per year for five years. Customers will be charged $90 per hour for bulldozer work. The buldozer operator costs $30 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $7,500. The bulldozer uses fuel that is expected to cost $15 per hour of bulldozer operation Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.736 1.690 2.673 2.487 2.402 2.283 2.105 3.465 3.170 3.037 2.055 2.589 5 3.793 3.605 3.353 2.991 6 4.917 4.355 3.705 3.326 7 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.960 4,487 3.637 6.602 5.759 5.320 4.792 4.031 10 7.360 6.145 5,650 5.019 4.192 3 9 .. Determine the equal annual net cash flows from operating the bulldozer Jones Excavation Company Equal Annual Net Cash Flows Cash inflows: a. Determine the equal annual net cash flows from operating the bulldozer. Jones Excavation Company Equal Annual Net Cash Flows Cash inflows: o Cash outflows: b. Determine the net present value of the investment, assuming that the desired rate of return is 10%. Use the table of present value of an annuity of $1 table above. Round to the nearest dollar Present value of annual net cash flows Amount to be invested Check My Work