Briggs Excavation Company is planning an investment of $882,700 for a bulldozer. The bulldozer is expected to operate for 4,000 hours per year for 10 years. Customers will be charged $145 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 $40,000. The bulldozer uses fuel that is expected to cost $45 per hour of bulldozer operation.Present Value of an Annuity of $1 at Compound InterestYear 6% 10% 12% 15% 20%1 0.943 0.909 0.893 0.870 0.8332 1.833 1.736 1.690 1.626 1.5283 2.673 2.487 2.402 2.283 2.1064 3.465 3.170 3.037 2.855 2.5895 4.212 3.791 3.605 3.352 2.9916 4.917 4.355 4.111 3.784 3.3267 5.582 4.868 4.564 4.160 3.6058 6.210 5.335 4.968 4.487 3.8379 6.802 5.759 5.328 4.772 4.03110 7.360 6.145 5.650 5.019 4.192a. Determine the equal annual net cash flows from operating the bulldozer. Use a minus sign to indicate cash outflows.b. Determine the net present value of the investment, assuming that the desired rate of return is 20%.c. Should Briggs Excavation invest in the bulldozer, based on this analysis?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

Answers

Answer 1

Answer:

A) initial outlay = -$882,700

cash flow per year = [($145 - $34 - $45) x 4,000] - $40,000 = $224,000

B) NPV = -$882,700 + ($224,000 x 4.192) = $56,308

C) Since the NPV is positive, then the company should invest in the new bulldozer.  

D) $882,700 = annual cash flow x 4.192

annual cash flow = $882,700 / 4.192 = $210,567.75

annual cash flow = (contribution margin per hour x ?) - $40,000

$210,568 = ($66 x ?) - $40,000

$250,568 = $66 x ?

number of hours = $250,568 / $66 = 3,796.48 ≈ 3,796 hours


Related Questions

16. A put option that expires in eight months with an exercise price of $55 sells for $7.34. The stock is currently priced at $52, and the risk-free rate is 3.1 percent per year, compounded continuously. What is the price of a call option with the same exercise price and expiration date

Answers

Answer: $5.47

Explanation:

Based on the values given in the question, the price of a call option with the same exercise price and expiration date will be given by using the equation regarding put call parity which will be:

C + (X)e^-rt = Stock Price + P

Therefore,

C + (55)e^-0.031(8/12) = 52 + 7.34

C = $5.47

Therefore, the price of the call option would be $5.47

The task of crafting a strategy is
А
the function and responsibility of a few high-level executives
B
more of a collaborative group effort that involves all managers and sometimes key employees striving
to arrive at a consensus on what the overall best strategy should be
С
the function and responsibility of a company's strategic planning staff
D
a job for a company's whole management team - senior executives plus the managers of business
units, operating divisions, functional departments, manufacturing plants, and sales districts
Record Answer
You must select an answer and press "Record Answer" for your answer to be recorded. DO NOT let the time expire for the question you are on.
If this happens before you answer a question, the exam will automatically advance to the next question and you will not get credit for the

Answers

The correct answer is: D

Which of the following locations can NOT be insulated to promote energy conservation?

Windows

Walls

Balcony

Roof

Answers

Answer:

balcony

Explanation:

its outside itd be a waste of the energy

Choose 3 macro factors (Political, Economical, Social, Technological, Environmental)

Answers

Answer: See explanation

Explanation:

Economic factors : Some economic factors that affect business can include Inflation, interest rates, exchange rates, taxes, recession and level of demand and supply. It should be noted that the economic factors of a business has an impact on the production level of the business and also the consumers decision making.

Technological factors: Technological factors has to do with the skills that are put into production, and the technologies that are used for production purpose. Technological factors include automation, 3D technology, speed, internet connectivity, wireless charging etc.

Political factors: Political factors also affect a business. Businesses need to be updated regarding the political and legal issues in order to thrive. These include copyright law, fraud law, employment law, safety law and discrimination law.

Which problem is more likely to affect a partnership than a corporation?
A.) It is overly expensive and complicated to get started.
B.) Shareholders may remove the owners from the company.
C.) The business may end if one owner chooses to leave.
D.) There are too many legal regulations controlling the business.

Answers

Answer:

C.) The business may end if one owner chooses to leave.

Explanation:

A partnership business requires two or more people to come together and make a formal agreement to combine their resources to do business.  Usually, partnerships are founded by people with the same business vision. Owners of a partnership business are known as partners.

Partners share responsibilities in running the business. Profits and losses realized are shared as per the partnership deed.  A partnership business is simple in formations. Partners can raise capital with relative ease than a sole trader. The business passes its income as the income of partners. However, the death, withdrawal, or bankruptcy of one partner may lead to the partnership's dissolution.

Answer:

c

Explanation:

just took the quiz

When mortgages are pooled together and interests in the pool are sold as securities, this process is referred to as

Answers

Answer:

Mortgage Backed Security

Explanation:

When mortgages are pooled together and interests in the pool are sold as securities, this process is referred to as mortgage backed security.

Sue purchased a stock for $45 a share, held it for one year, received a $234 dividend, and sold the stock for S46.45, What nominal rate of return did she earn

Answers

Answer: 8.42%

Explanation:

A dividend of $234 is impossible given the price so I will assume you meant to type $2.34.

Nominal rate of return in that case is;

= (Selling price - Purchase price+ Dividends) / Purchase price

= (46.45 - 45 + 2.34) / 45

= 8.42%

The difference between a public and private school is that the government financially supports private schools A. True B. False

Answers

Answer:

False

Explanation:

Because the government supports a public school and not a private one.

false, the government supports public schools but not private

How does an employee know how much their paycheck is going to be?

pls help me

Answers

Answer:

There supposed to be given that info when applying for the job or in meeting! hope it helped :))

When an individual taxpayer sells depreciable real property used in a business for an amount that exceeds its original cost/original basis, how is the gain taxed

Answers

Answer:

The gain will be taxed as long-term capital gain and will be reported on the income taxes.

Explanation:

This capital gain by this individual taxpayer results from an increase in a capital asset's value.  It is only considered to be realized when the taxpayer sells the asset.  A capital gain may be regarded as a short-term (one year or less) capital gain or a long-term (more than one year) capital.  The taxpayer is expected to report the capital gain on her income taxes.

A major concern with Social Security is the possibility that funds will not be available when today’s tax-payers retire to become beneficiaries. According to the Social Security Trustee’s report, an increase of 1.89% in the Social Security payroll tax would keep the account full for the next 75 years. To achieve similar results, benefits would have to be decreased from the current 42% of the ending salary to 29% of the salary. Cindy is relatively new to the workforce. She has 32 years until she can retire. Her current annual salary is $45,000. 1a) Calculate how much Cindy will have to pay in Social Security tax (6.2%) based on this salary. 1b) Calculate how much Cindy will have to pay in Social Security tax if the tax was increased by 1.89%. 2a) Calculate Cindy’s annual Social Security benefit (about 42%) if her salary remains unchanged until she retires (annual average is $45,000). 2b) Calculate Cindy’s annual Social Security benefit if her salary remains unchanged but benefits (based on her annual salary of $45,000) were cut from 42% to 29%. 3) If Cindy were given a choice between the increase in Social Security tax now or the decrease in Social Security benefits when she retires, which would you recommend she choose? Explain your answer thoroughly.

Answers

If the tax was raised by 1.89%, Cindy will be responsible for paying Social Security tax 3,640.50.

Equation :

1a) 45,000 * 6.2% = 2,790

1b) 45,000 * (6.2% + 1.89%) = 45,000 * 8.09% = 3,640.50

2a) 45,000 * 42% = 18,900

2b) 45,000 * 29% = 13,050

Briefing :

Instead of a reduction in Social Security benefits when she retires, I believe it would be preferable to have an increase in Social Security taxes now and earn an annual pension of $18,900.

Does everyone contribute to Social Security?

Regardless of whether they are employed by an employer or work for themselves, the majority of taxpayers are required to pay Social Security taxes on their income. A few categories of American taxpayers are exempt from the Social Security tax, nevertheless.

By choosing not to participate in Social Security, you can invest more of your salary in your own retirement plan. Additionally, it offers you the option to manage that portion of your income on your own terms based on biblical principles rather than letting Uncle Sam make that decision for you.

To know more about Social Security taxes visit:-

https://brainly.com/question/18268724

#SPJ1

Natural Corporation often fails to file the annual reports required by law. They also have failed to conduct annual shareholders meeting and their bylaws have been out of date and not followed for about four years. What could be the result of this malfeasance

Answers

Answer: The shareholders could lose their investments.

Explanation:

The above scenario given in the question will lead to shareholders losing their investments. This is because the shareholders are not carried along with regards to happening in the company.

Also, the company is not filing the annual reports required by law and they also have failed to conduct annual shareholders meeting and their bylaws have been out of date and not followed for about four years. Also, their stock prices can be discounted due to improper practices.

What is the most likely message behind the Adbusters' ad with the Gap logo
on the silhouette of a head?
A. That everyone needs a hat from the Gap
B. That Gap customers are not very smart
C. That you should have the Gap on your mind
D. That Gap clothes make you think hard

Answers

Answer:

I know its not A so i think  C

Explanation:

The economic effect of an expense is incurred when the benefit expires or is used up not when cash is paid true or false

Answers

Answer:

false

Explanation:

Which type of text takes a larger proportion of money from people who make more money?

A
fair tax

B
progressive tax

C
proportional tax

D
regressive tax

Answers

Answer:

B: progressive tax

Explanation:

A progressive tax exacts a higher tax rate on high-income earners. The taxpayer's income is the basis for the tax rate. Under the progressive tax system, income levels are grouped into tax brackets. Taxpayers in a low-income bracket will have a low tax rate compared with those in the higher-income bracket. It means the wealthy will pay more taxes compared to the poor. The more the income, the higher the taxes paid.



If a company has employees, their salaries and wages are accounted for in

which column of a worksheet?

A. Credit column of balance sheet

B. Credit column of income statement

C. Debit column of income statement

D. Debit column of balance sheet

Answers

Answer: C. Debit column of income statement

Explanation:

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