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Anna007 [38]
3 years ago
8

Jones Excavation Company is planning an investment of $125,000 for a bulldozer. The bulldozer is expected to operate for 1,000 h

ours per year for five years. Customers will be charged $90 per hour for bulldozer work. The bulldozer operator costs $30 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $7,500. The bulldozer uses fuel that is expected to cost $15 per hour of bulldozer operation.
Determine the equal annual net cash flows from operating the bulldozer.
Business
1 answer:
wlad13 [49]3 years ago
3 0

Answer:

net cash flows = $37,500 per year

Explanation:

initial investment $125,000

operate 1,000 hours per year for 5 years

price per hour $90

direct labor costs $30 per hour

direct materials (fuel) $15 per hour

annual maintenance $7,500

the annual cash flows from operating the bulldozer = [($90 (price per hour) - $45 (total variable costs per hour) x 1,000 hours] - $7,500 (annual maintenance cost) = $45,000 - $7,500 = $37,500 per year

the cash flows should be the same for years 1 through 5.

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Answer:

True

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3 0
2 years ago
PLEASE HELP ASAP BRAINLIEST TIMED TEST PLZZZZZZZ HELP HURRY React to the quoted statement. Defend your opinion: “My feelings are
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Explanation:

The term "Intrapersonal" intelligence might be something new but it is one of the soft skill which completely talks about "Personal emotions"

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4 0
3 years ago
You get a 15% discount if you buy a new range listing at $924.95 and a new freezer listing at $12,695.95 on the same bill. What
ale4655 [162]

Answer:

a)$2,043.14

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5 0
2 years ago
Economic bads are items
sdas [7]
Economic bads for which the desired quantity is less than what nature provides at a zero price.<span>
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7 0
3 years ago
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ikadub [295]

Answer:

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3 years ago
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