Evaluate the success of the project

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Quillen Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $227,469, would have a useful life of 9 years, zero salvage value, and would result in net annual cash flows of $43,700 per year. Now that the investment has been in operation for 1 year, revised figures indicate that it actually cost $240,559, will have a useful life of 11 years, and will produce net annual cash flows of $37,905 per year.

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.)

Original estimate net present value $ Revised estimate net present value $

The project is notis a success.

Reference no: EM131110361

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