Evaluate the success of the project

Assignment Help Finance Basics
Reference no: EM131110361

Assignment

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

Questions Cloud

Engage in bertrand price competition : Two firms, A and B, engage in Bertrand price competition in a market with inverse demand given by P = 12 - Q. Firm A has a higher marginal cost: cA > cB . Whenever a firm undercuts the rival’s price, it has all the market. If a firm charges the same ..
Prepare the bank reconciliation at june for golden image : Financial Accounting: Prepare the bank reconciliation at June 30 for Golden Image, Inc. Prepare the necessary journal entries by Golden Image, Inc., at June 30.
What income or loss before income taxes : What income or loss before income taxes should Hooke record as a result of the facts above for the year ended December 31, 2011? (Hint: Amortize commissions over the life of the lease.)(AICPA adapted)
Discuss aboriginals work in the fur trade in canada : Students are expected to produce an analytical essay of 6 to 8 pages, which compares two books that explore a theme in Canadian working class history. All students should select a topic from the list included below. The paper should be evaluate each ..
Evaluate the success of the project : 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).
Compute net present value and profitability index of project : Compute the net present value and profitability index of each project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).
Imperfect competition is monopolistic competition : Another form of imperfect competition is monopolistic competition. List three examples of real firms that operate in monopolistically competitive markets?
Increase in dollar price of the british pounds will : When a bank accepts a checkable deposit from a customer, its deposits will increase and its excess reserves will: An increase in the dollar price of the British pounds will: If bond prices decrease, then the: The limited liability rule means that if ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the earnings before interest and taxes

Compute the earnings before interest and taxes (EBIT) for each level of sales. Compute the earnings per share (EPS) for each level of sales, the expected EPS, the standard deviation of the EPS, and the coefficient of variation of EPS, assuming that t..

  The merryweather firm wants to raise 29 million to expand

the merryweather firm wants to raise 29 million to expand its business. to accomplish this the firm plans to sell

  What is the earnings per share for abc

What is the earnings per share for ABC?

  A stocks returns have the following distribution demand for

a stocks returns have the following distributiondemand for the companys products probability of this demand occurring

  Determine the costs, revenue and profit functions

Determine the costs, revenue, and profit functions in terms of the number of students enrolled.

  What was the amount of net income reported by gore corp

A small stock dividend was declared and issued in 2008. The market value of the shares was $10,500. Cash dividends were $15,000 in both 2008 and 2007. The common stock has no par or stated value.

  Why you think this system is best for consumers

Explain which economic system (market, planned, mixed, or traditional) you think is best for consumers. Describe at least one reason why you think this system is best for consumers.

  Calculate the npv

Calculate the NPV for both conveyor belt systems.

  Cost to retained earnings in investor-owned business

Why is there a cost to retained earnings in investor-owned business?

  The jackson-timberlake wardrobe co just paid a dividend of

the jackson-timberlake wardrobe co. just paid a dividend of 1.45 per share on its stock. the dividends are expected to

  Explain how this leader in your firmcan speculate on the

a leader in your firm has been studying the foreign exchange market for a number of years and believes that she can

  What is the probability distribution of the stock price

What is the probability distribution of the stock price at the end of 2 years? ½ years? ¼ years? Dt years?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd