Net Present Value MethodAnnuity Briggs Excavation Company is planning an investment of $146,900 for a bulldozer. The bulldozer is expected to operate for 1,000 hours per year for seven years. Customers will be charged $110 per hour for bulldozer work. The bulldozer operator costs $31 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $10,000. The bulldozer uses fuel that is expected to cost $41 per hour of bulldozer operation. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Briggs Excavation Company Equal Annual Net Cash Flows Cash inflows: Hours of operation Hours of operation Revenue per hour X $Revenue per hour Revenue per year $Revenue per year Cash outflows: Hours of operation Hours of operation Fuel cost per hour $Fuel cost per hour Labor cost per hour Labor cost per hour Total fuel and labor costs per hour X $Total fuel and labor costs per hour Fuel and labor costs per year Fuel and labor costs per year Maintenance costs per year Maintenance costs per year Annual net cash flows $Annual net cash flows Question Content Area b. Determine the net present value of the investment, assuming that the desired rate of return is 6%. Use the present value of an annuity of $1 table above. Round to the nearest dollar. If required, use the minus sign to indicate a negative net present value. Present value of annual net cash flows $fill in the blank 8594dff6f02904e_1 Amount to be invested $fill in the blank 8594dff6f02904e_2 Net present value $fill in the blank 8594dff6f02904e_3 c. Should Briggs Excavation invest in the bulldozer, based on this analysis? , because the bulldozer cost is the present value of the cash flows at the minimum desired rate of return of 6%. d. 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 8594dff6f02904e_6 hours