Current Attempt in Progress Stanton Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $490,000, would have a useful life of 9 years, zero salvage value and would result in net annual cash flows of $90,000 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $510,000, will have a useful life of 11 years, and will produce net annual cash flows of $77,000 per year. Assume a discount rate of 10% TABLE 3 Present Value of 1 Periods 1 2 3 4 5 5% 95238 90703 .86384 .82270 .78353 7% 0.93458 0.87344 0.81630 0.76290 0.71299 8% 92593 .85734 .79383 .73503 .68058 1196 .90090 .81162 .73119 .65873 59345 6 7 8 9 10 490 -96154 192456 .88900 .85480 .82193 .79031 .75992 .73069 .70259 .67556 .64958 .62460 .60057 .57748 .55526 -53391 .51337 49363 .47464 45639 .74622 .71068 .67684 .64461 .61391 .58468 .55684 .53032 .50507 48102 6% .94340 .89000 .83962 .79209 .74726 .70496 -66506 .62741 .59190 .55839 .52679 49697 46884 .44230 .41727 .39365 .37136 .35034 .33051 31180 0.66634 0.62275 0.58201 0.54393 0.50835 0.47509 0.44401 0.41496 0.38782 0.36245 9% .91743 .84168 .77218 .70843 .64993 .59627 .54703 .50187 446043 .42241 .38753 .35554 .32618 .29925 .27454 -63017 .58349 .54027 -50025 146319 .42888 .39711 .36770 .34046 .31524 .29189 .27027 25025 .23171 .21455 10% .90909 .82645 .75132 .68301 .62092 .56447 51316 .46651 .42410 .38554 .35049 .31863 .28966 .26333 23939 .21763 .19785 .17986 .16351 .14864 1296 .89286 .79719 .71178 .63552 .56743 -50663 45235 .40388 36061 .32197 .28748 .25668 .22917 .20462 .18270 .16312 .14564 .13004 .11611 .10367 .53464 .48166 .43393 -39092 .35218 .31728 .28584 .25751 .23199 .20900 .18829 .16963 .15282 .13768 .12403 11 12 13 14 15 15% .86957 .75614 .65752 .57175 49718 43233 37594 .32690 28426 .24719 21494 .18691 .16253 .14133 .12289 .10687 .09293 .08081 .07027 .06110 16 17 18 19 20 .45811 .43630 .41552 .39573 37689 0.33873 0.31657 0.29586 0.27615 0.25842 .25187 .23107 21199 .19449 .17843 Question 9 of 17 4 18 19 20 49363 .47464 -45639 541552 39573 37689 35034 33051 31180 0.29586 0.27615 0.25842 25025 23171 .21455 .21199 .19449 17843 17986 16351 .14864 15282 .13768 12403 13004 11611 .10367 08081 07027 .06110 TABLE4 Present Value of an Annuity of 1 NM (n) Payments 59 6% 1 96154 .95238 .94340 2 1.88609 1.85941 1.83339 2.77509 2.72325 2.67301 4 3.62990 3.54595 3.46511 5 4.45182 4.32948 4.21236 6 5.24214 5.07569 4.91732 7 6.00205 5.78637 5.58238 8 6.73274 6.46321 6.20979 9 7.43533 7.10782 6.80169 10 8.11090 7.72173 7.36009 11 8.76048 8.30641 7.88687 12 9.38507 8.86325 8.38384 13 9.98565 9.39357 8.85268 14 10.56312 9.89864 9.29498 15 11.11839 10.37966 9.71225 16 11.65230 10.83777 10.10590 17 12.16567 11.27407 10.47726 18 12.65930 11.68959 10.82760 19 13.13394 12.08532 11.15812 20 13.59033 12.46221 11.46992 790 896 9% 10% 11% 1296 154 0.93458 92593 91743 90909 .90090 .89286 .86957 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 5.97130 5.74664 5.53482 5.33493 5.146124.96764 4.48732 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 9.446658.85137 8.31256 7.82371 7.37916 6.97399 5.95424 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 10.05909 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 10.33560 960360 8.95012 8.36492 7.839297.36578 6.19823 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 Calculate the net present value. (Use the above table.) (Round factor values to 5 decimal places, e 3. 1.25124 and final answers to O decimal places, e.g. 5,275.) 8 o 10 11 12 13 14 15 16 17 18 19 20 6.00205 6.73274 7.43533 8.11090 8.76048 9.38507 9.98565 10.56312 11.11839 11.65230 12.16567 12.65930 13.13394 13.59033 5.78637 5.58238 6.46321 6.20979 7.10782 6.80169 7.72173 7.36009 8.30641 7.88687 8.86325 8.38384 9.39357 8.85268 9.89864 9.29498 10.37966 9.71225 10.83777 10.10590 11.27407 10.47726 11.68959 10.82760 12.08532 11.15812 12.46221 11.46992 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 6,51523 6.24689 5.99525 5.759025.53705 5.32825 4.77158 7.02358 6.71008 6.41766 6.14457 5.88923 5.650225.01877 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 8.74547 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 9.10791 8.55948 8.06069 7.60608 7.19087 6,81086 5.84737 9.44665 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 10.05909 9.37189 8.75563 8.20141 7.701627.24967 6.12797 10.33560 9.60360 8.95012 8.36492 7.839297.36578 6.19823 10.59401 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 Calculate the net present value. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) Revised estimate Original estimate Net present value Which project is successful? Revised estimate + Attempts: 0 of 1 used Submit Answer Save for Later Last saved 37 minutes ago. Saved work will be auto-submitted on the due date