Question

your answer is partially correct. Try again. Quillen Company is performing a post-audit of a project completed one year 20. The initial estimates were that the project would cost $249,453 would have a useful life of years, zero salvage value and would result in net annual cash flow of $45.300 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $260.336, will have a total useful life of 11 years, and will produce net annual flows of $20.200 per year. Click here we table Evaluate the success of the project. Assume a discount rate of 104. If the net present value is negative use either a negative si preceding the number eg 5 or parentheses eg (45). Round present value answers to decimal places. e. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Original estimate net present value Revised estimate not present value

Answer 1

Annual cash flows	45800
X PV factor	5.75902	=(1-(1.10)^-9)/0.10
Present value of Annual cash flows	263763
Less: Investment cost	249453
Original estimate net present value	14310
Annual cash flows	39200
X PV factor	6.49506	=(1-(1.10)^-11)/0.10
Present value of Annual cash flows	254606
Less: Investment cost	260336
Revised estimate net present value	-5730