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. Currently I have, PV = 2.991 (20% Desired Rate of Return) (5 years) Amount to be invested = $449800 Total Cost for Customers (Bulldozer use) = $150/hour Bulldozer Operator (per hour) = $26/ hour Bulldozer fuel per hour = $34 Annual Maintenance Cost (per year) = $20,000 Question: I was wondering how do you calculate this part?
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. Currently I have, PV = 2.991 (20% Desired Rate of Return) (5 years) Amount to be invested = $449800 Total Cost for Customers (Bulldozer use) = $150/hour Bulldozer Operator (per hour) = $26/ hour Bulldozer fuel per hour = $34 Annual Maintenance Cost (per year) = $20,000 Question: I was wondering how do you calculate this part?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 22E
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Question
Determine the number of operating hours such that the present value of
Currently I have, PV = 2.991 (20% Desired
Amount to be invested = $449800
Total Cost for Customers (Bulldozer use) = $150/hour
Bulldozer Operator (per hour) = $26/ hour
Bulldozer fuel per hour = $34
Annual Maintenance Cost (per year) = $20,000
Question:
I was wondering how do you calculate this part?
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