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