Q10/12

Current Attempt in Progress Whispering Winds Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $575,000, would have a useful life of 9 years, zero salvage value, and would result in net annual cash flows of $107,000 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $625,000, will have a useful life of 11 years, and will produce net annual cash flows of $94,000 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 values to 5 decimal places, e. 1.25124 and final answers to 0 decimal places, e. .5,275.) The original project was