Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. net present value method - aninuity jones excavati

Net present value method - aninuity Jones Excavation Company is planning an investment of $124,400...

50.1K

Verified Solution

Question

Accounting

image
image
image
Net present value method - aninuity Jones Excavation Company is planning an investment of $124,400 for a bulldozer. The bulldozer is expected to operate for 1,000 hours per year for 6 years. Customers will be charged $105 per hour for bulidozer work. The bulldozer operator costs $29 per hour in wages and benefits. The buildozer is expected to require annual maintenance costing $10,000. The bulldozer uses fuel that is expected to cost $38 per hour of bullozer operation. a. Determine the equal annual net cash flows from operating the bulldozer. b. Determine the net present value of the investment, assuming that the desired rate of return is 10\%h. Use the present value of an annuity of $1 table above. Round to the nearest dollar. If required, use the minus sign to indicote a negative net present value. 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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students