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)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter19: Capital Investment
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Problem 22E
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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?

 

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