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Swifty Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $600,000, would
Swifty Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $600,000, would have a useful life of 9 years, zero salvage value, and would result in net annual cash flows of $112.000 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $658,000, will have a useful life of 11 years, and will produce net annual cash flows of $99.000 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, es. 1.25124 and Ainol answers to O decimal places, ea 5.275) Original estimate Net present value The original project was Revised estimate
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