Blossom Company is performing a post-audit of a project completed one year ago. The initial...
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Blossom Company is performing a postaudit of a project completed one year ago. The initial estimates were that the project would cost $ would have a useful life of years and zero salvage value, and would result in net annual cash flows of $ per year. Now that the investment has been in operation for year, revised figures indicate that it actually cost $ will have a total useful life of years including the year just completed and will produce net annual cash flows of $ per year. Click here to view PV table.
Evaluate the success of the project. Assume a discount rate of If the net present value is negative, use either a negative sign preceding the number eg or parentheses eg Round present value answers to decimal places, eg For calculation purposes, use decimal places as displayed in the factor table provided.
Original estimate net present value $
Revised estimate net present value $
The project a success.
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