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Novak Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $545,000, would have

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Novak Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $545,000, would have a useful life of 9 years, zero salvage value, and would result in net annual cash flows of $101,000 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $583,000, will have a useful life of 11 years, and will produce net annual cash flows of $88,000 per year. Click here to view PV tables. Evaluate the success of the project. The company's discount rate is 10\%. (Use the above table.) (Round factor volues to 5 decimal places, es. 1.25124 and final answers to O decimal places, es. 5,275.) The original project was

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