Net Present Value MethodAnnuity Briggs Excavation Company is planning an investment of $132,000 for a bulldozer. The bulldozer is expected to operate for 1,500 hours per year for five years, Customers will be charged $110 per hour for bulldozer work. The bulldozer operator costs $28 per hour in wages and benefits. The buldozer is expected to require annual maintenance costing $8,000. The bulldozer uses fuel that is expected to cost $46 per hour of buildrer operation. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0 0.833 1.528 2 3 .943 1.833 2.673 3.465 0.870 1.626 2.283 2.855 3.352 2.106 0.893 1.690 2.402 3.037 3.605 4.111 4.212 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 2.589 2.991 3.784 5.582 4.160 3.326 3.605 3.837 4.031 4.467 6.802 4.968 5.328 5.650 4.772 7.360 5.019 4.192 a. Determine the equal annual net cash flows from operating the bulldozer Briggs Excavation Company Equal Annual Net Cash Flow Cash inflows 0 0 0 b. Determine the net present value of the investment, assuming that the desired rate of retums 10%. Use the table of present value of n Present value of annual net cash flows uty of $above. Round to the nearest dollar. Les amount to be invested Net present al c. Should nogs Excavation invest in the bulldozer, based on this analysis because the bulldozer costs the present value of the cash flows at the minimum desired rate of return of 10% d. Determine the number of operating hours such that the present value of cash rows equals the amount to be invested (Round interim calculations and final answer to the nearest whole number.) hours Net Present Value MethodAnnuity Briggs Excavation Company is planning an investment of $132,000 for a bulldozer. The bulldozer is expected to operate for 1,500 hours per year for five years, Customers will be charged $110 per hour for bulldozer work. The bulldozer operator costs $28 per hour in wages and benefits. The buldozer is expected to require annual maintenance costing $8,000. The bulldozer uses fuel that is expected to cost $46 per hour of buildrer operation. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0 0.833 1.528 2 3 .943 1.833 2.673 3.465 0.870 1.626 2.283 2.855 3.352 2.106 0.893 1.690 2.402 3.037 3.605 4.111 4.212 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 2.589 2.991 3.784 5.582 4.160 3.326 3.605 3.837 4.031 4.467 6.802 4.968 5.328 5.650 4.772 7.360 5.019 4.192 a. Determine the equal annual net cash flows from operating the bulldozer Briggs Excavation Company Equal Annual Net Cash Flow Cash inflows 0 0 0 b. Determine the net present value of the investment, assuming that the desired rate of retums 10%. Use the table of present value of n Present value of annual net cash flows uty of $above. Round to the nearest dollar. Les amount to be invested Net present al c. Should nogs Excavation invest in the bulldozer, based on this analysis because the bulldozer costs the present value of the cash flows at the minimum desired rate of return of 10% d. Determine the number of operating hours such that the present value of cash rows equals the amount to be invested (Round interim calculations and final answer to the nearest whole number.) hours