Current Attempt in Progress

Oriole Company is performing a post$-$audit of a project completed one year ago. The initial estimates were that the project would cost

$$246,000,$ would have a useful life of $9$ years and zero salvage value, and would result in net annual cash flows of $$45,200$ per year.

Now that the investment has been in operation for $1$ year, revised figures indicate that it actually cost $$251,000,$ will have a total useful

life of $11$ years $($including the year just completed$),$ and will produce net annual cash flows of $$37,900$ per year. Click here to view PV

table.

Evaluate the success of the project. Assume a discount rate of $10\%.($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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