Briggs Excavation Company is planning an investment of $363

Briggs Excavation Company is planning an investment of $363,200 for… Briggs Excavation Company is planning an investment of $363,200 for a bulldozer. The bulldozer is expected to operate for 2,000 hours per year for six years. Customers will be charged $150 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 Annuity of $1 at Compound InterestYear6%10%12%15%20%10.9430.9090.8930.8700.83321.8331.7361.6901.6261.52832.6732.4872.4022.2832.10643.4653.1703.0372.8552.58954.2123.7913.6053.3532.99164.9174.3554.1113.7853.32675.5824.8684.5644.1603.60586.2105.3354.9684.4873.83796.8025.7595.3284.7724.031107.3606.1455.6505.0194.192Question Content Area a. Determine the equal annual net cash flows from operating the bulldozer. Use a minus sign to indicate cash outflows.Cash inflows:   Fuel and labor costs per yearHours of operationMaintenance costs per yearTotal fuel and labor costs per hourHours of operation Hours of operation Fuel and labor costs per yearFuel cost per hourLabor cost per hourRevenue per hourRevenue per hour $Revenue per hour Fuel and labor costs per yearFuel cost per hourLabor cost per hourRevenue per yearRevenue per year  $Revenue per yearCash outflows:   Fuel and labor costs per yearHours of operationMaintenance costs per yearTotal fuel and labor costs per hourHours of operation Hours of operation Annual net cash flowFuel cost per hourRevenue per yearRevenue per hourFuel cost per hour$Fuel cost per hour  Annual net cash flowLabor cost per hourRevenue per yearRevenue per hourLabor cost per hourLabor cost per hour  Annual net cash flowTotal fuel and labor costs per hourRevenue per yearRevenue per hourTotal fuel and labor costs per hour $Total fuel and labor costs per hour Annual net cash flowFuel and labor costs per yearRevenue per yearRevenue per hourFuel and labor costs per year  Fuel and labor costs per yearAnnual net cash flowMaintenance costs per yearRevenue per yearRevenue per hourMaintenance costs per year  Maintenance costs per yearAnnual net cash flowHours of operationRevenue per yearRevenue per hourAnnual net cash flow  $Annual net cash flowFeedback Area Feedback  a. Subtract the operating expenses (hourly fuel and labor costs, multiplied by the operating hours, plus the annual maintenance costs) from the revenues (operating hours multiplied by the hourly revenue).    Question Content Area b. Determine the net present value of the investment, assuming that the desired rate of return is 20%. Use the present value of an annuity of $1 table above. Round to the nearest dollar. If required, use the minus sign to indicate a negative net present value.Present value of annual net cash flows$fill in the blank d82363fef05002a_1Amount to be invested$fill in the blank d82363fef05002a_2Net present value$fill in the blank d82363fef05002a_3c. Should Briggs Excavation invest in the bulldozer, based on this analysis? YesNoNo, because the bulldozer cost isless thanmore thanmore thanthe 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.fill in the blank d82363fef05002a_6 hours Accounting Business Financial Accounting ACCT 202

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