Quillen Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $221,754, would have a useful life of 9 years, zero salvage value, and would result in net annual cash flows of $44,400 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $234,511, will have a total useful life of 11 years, and will produce net annual cash flows of $38,500 per year.

Evaluate the success of the project. Assume a discount rate of 12%

Original estimate net present value

$

Revised estimate net present value

$

is it accepted or not?