Question: Your answer is partially correct. Try again. Bramble Company is performing a post-audit of a project completed one year ago. The initial estimates were that

 Your answer is partially correct. Try again. Bramble Company is performing

Your answer is partially correct. Try again. Bramble Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $247,000, would have a useful life of 9 years, zero salvage value, and would result in net annual cash flows of $45,400 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $248,000, will have a total useful life of 11 years (including the year just completed), and will produce net annual cash flows of $37,300 per year. Click here to view i table. Evaluate the success of the project. Assume a discount rate of 10%. (If the net present value is negative, use alther a negative sign preceding the number ng 45 or parentheses e (45). Round present value answers to decimal places, e.g. 125. For calculation purposes, use 5 decimal places a displayed in the factor table provided) Original estimate net present value 15906 Revised estimate net present value The project is not a success Click If you would like to show Work for this questioni Open Show Work

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!