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Current Attempt in Progress Carla Vista Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $250,000, would have a useful life of 9 years and zero salvage value, and would result in net annual cash flows of $44,200 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $263,000, will have a total useful life of 11 years (including the year just completed), and will produce net annual cash flows of $37,700 per year. Click here to view PV table. Evaluate the success of the project. Assume a discount rate of 9% (f the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). Round present value answers to 0 decimal places, eg 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Original estimate net present value $ Revised estimate net present value $ The project a success

Current Attempt in Progress Carla Vista Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $250,000, would have a useful life of 9 years and zero salvage value, and would result in net annual cash flows of $44,200 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $263,000, will have a total useful life of 11 years (including the year just completed), and will produce net annual cash flows of $37,700 per year. Click here to view PV table. Evaluate the success of the project. Assume a discount rate of 9% (f the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). Round present value answers to 0 decimal places, eg 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Original estimate net present value $ Revised estimate net present value $ The project a success

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Current Attempt in Progress Carla Vista Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $250,000, would have a useful life of 9 years and zero salvage value, and would result in net annual cash flows of $44,200 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $263,000, will have a total useful life of 11 years (including the year just completed), and will produce net annual cash flows of $37,700 per year. Click here to view PV table. Evaluate the success of the project. Assume a discount rate of 9%. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Original estimate net present value Revised estimate net present value The project a success $
Transcribed Image Text:Current Attempt in Progress Carla Vista Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $250,000, would have a useful life of 9 years and zero salvage value, and would result in net annual cash flows of $44,200 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $263,000, will have a total useful life of 11 years (including the year just completed), and will produce net annual cash flows of $37,700 per year. Click here to view PV table. Evaluate the success of the project. Assume a discount rate of 9%. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Original estimate net present value Revised estimate net present value The project a success $
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