Sheridan Company is considering a long-term investment project called ZIP. ZIP will require an investment of $126,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,200, and annual cash outflows would increase by $39,900. The companys required rate of return is 9%. Click here to view PV table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Net present value

Sandhill Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $229,000, would have a useful life of 9 years and zero salvage value, and would result in net annual cash flows of $44,000 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $247,000, will have a total useful life of 11 years (including the year just completed), and will produce net annual cash flows of $39,200 per year. Click here to view PV table. Evaluate the success of the project. Assume a discount rate of 11%. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Original estimate net present value		$enter a dollar amount rounded to 0 decimal places
Revised estimate net present value		$enter a dollar amount rounded to 0 decimal places