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Net Present Value Method-Annulty Jones Excavation Company is planning an investment of $82,100 for a bulidozer. The bulldozer is expected to operate for 2,000 hours

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Net Present Value Method-Annulty Jones Excavation Company is planning an investment of $82,100 for a bulidozer. The bulldozer is expected to operate for 2,000 hours per year for seven years. Customers will be charged $105 per hour for bulldozer work. The bulldozer operator costs $38 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $20,000. The bulldozer uses fuel that is expected to cost $50 per hour of bulldozer operation. Present Value of an Annulty of $1 at Compound Interest a. Determine the equal annual net cash flows from operating the bulldozer. b. Determine the net present value of the investment, assuming the the desired rate of retumn is 6%. Use the present value of an annuty of 51 table above. Round to the nearest dollar, If required, use the minus sign to indicate a negative net present value. 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. c. Should Jones invest in the bulldozer, based on this analysis? , because the bulidozer 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 caleulations and final answer to the nearest whole number. hours

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