Cullumber Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $223,000, would have a useful life of 9 years and zero salvage value, and would result in net annual cash flows of $44,600 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $226,000, will have a total useful life of 11 years (including the year just completed), and will produce net annual cash flows of $37,100 per year. Click here to view PV table. Evaluate the success of the project. Assume a discount rate of 12%. (If the net present value is negative, use either
Cullumber Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $223,000, would have a useful life of 9 years and zero salvage value, and would result in net annual
Evaluate the success of the project. Assume a discount rate of 12%. (If the
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Original estimate net present value
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$enter a dollar amount
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Revised estimate net present value
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$enter a dollar amount
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The project select an option a success.
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