Osborne Excavation Company is planning an investment of $137,800 for a bulldozer. The bulldozer is expected to operate for 2,000 hours per year for eight years. Customers will be charged $105 per hour for bulldozer work. The bulldozer operator costs $34 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 $45 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 a. Determine the equal annual net cash flows from operating the bulldozer. Enter all amounts as positive numbers. Annual cash inflows: Hours of operation fill in the blank 1 Revenue per hour $fill in the blank 2 Revenue per year $fill in the blank 3 Annual cash outflows: Hours of operation fill in the blank 4 Fuel cost per hour $fill in the blank 5 Labor cost per hour fill in the blank 6 Total fuel and labor costs per hour $fill in the blank 7 Fuel and labor costs per year fill in the blank 8 Maintenance costs per year fill in the blank 9 Annual net cash flow $fill in the blank 10 b. Determine the net present value of the investment, assuming that the desired rate of return is 15%. Use the table of present value of an annuity of $1 above. If required, round to the nearest dollar and use the minus sign to indicate a negative net present value. Present value of annual net cash flows $fill in the blank 11 Less amount to be invested fill in the blank 12 Net present value $fill in the blank 13 c. Osborne Excavation should (support / not support) the investment because the bulldozer cost is (greater/less ) than the present value of the cash flows at the (maximum/minimum) desired rate of return of 15%.