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reposting this question with the graph. I need help with section b, problem d (third pic) Net Present Value Method-Annuity Briggs Excavation Company is planning
reposting this question with the graph. I need help with section b, problem d (third pic)
Net Present Value Method-Annuity Briggs Excavation Company is planning an investment of $96,400 for a bulldozer. The bulldozer is expected to operate for 1,000 hours per year for five years. Customers will be charged $115 per hour for bulldozer work. The bulldozer operator costs $32 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 $42 per hour of bulldozer operation. Present Value of an Annuity of $1 at Compound Interest a. Determine the equal annual net cash flows from operating the bulidozer. Use a minus sign to indicate cash outflows. Determine the equal annual net cash flows from operating the bulldozer. Use a minus sign to indicate cash outfiows. - Cacakmly Wokk b. Determine the net present value of the investment, assuming that the desired rate of return is 20%. Use the present value of an annulty of s1 table above. Round to the nearest dollar. If required, use the minus sign to indicate a negative net present volue. c. Should Briggs Excavation 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 20% 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. hours Step by Step Solution
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