Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. pina colada company is performing a post-audit of

Pina Colada Company is performing a post-audit of a project that...

90.2K

Verified Solution

Question

Accounting

image
Pina Colada Company is performing a post-audit of a project that was estimated to cost $492,000, have a useful life of 6 years with a rero salvage value, and result in annual net cash flows of $118.000 per year. The company's required rate of return is 100 . After the investment was in operation for a year, revised figures indicate that It actually cost $538,000, will have a 9 year useful life, and will produce annual net cash flows of 589,000 . The present value of an annuity of 1 for 6 years at 10% is 4,35526 and for 9 years 15 5.75902 Click here to view PV tables. (a) Calculate the net present value tused on the original estimates. (For colculatien purpases, use 5 decimal places as displayed in the factor table previled. Round answer to 0 decimal places, e.g 5.275.) Net present value Deterinine whether the project should have been accepted

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Last year, Stewart-Stern Inc. reported $11,250 of sales, $4,500 of operating costs other than depreciation, and...

Finance
Q

As an employer, you are responsible to provide sufficient and suitable welfare facilities to [2] the workers. Describe...

Civil Engineering
Q

Given a 3- layered system with the following information: a1=3.2 in , P or q =...

Civil Engineering
Q

which type of anova is ised when there are two indeoendent variables each with more than...

Psychology
Q

oring oring conduct to give or receive informatio quiz Please do not move away from...

Biology
Q

O Confidentiality refers to the protection of privacy of data ntianity O This means information...

Biology
Q

5 1 kg of ice at 0 C 1 kg water at 100 C and...

Physics
Q

nswer given a 5 Bottom arm of a U tube of uniform section has length...

Physics
Q

A triangle has side lengths BC 9 AB 7 and AC 13 Which angle in...

Geometry
Q

Find f 2 for the piece wise function f x 2x 1 ifx 1 x...

Algebra
Q

XYZ Ltd will increase its production volume for Product A next year.To promote Product A...

Accounting
Q

According to the financial empowerment text Chapter 1, the first step in the financial planning...

Finance