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Quillen Company 250000

Price: $1.99


Quillen Company is performing a post-audit of a project completed one year ago.
The initial estimates were that the project would cost $250,000, would have a useful life
of 9 years, zero salvage value, and would result in net annual cash flows of $46,000 per year.
Now that the investment has been in operation for 1 year, revised figures indicate that it
actually cost $260,000, will have a useful life of 11 years, and will produce net annual cash
flows of $39,000 per year. Evaluate the success of the project. Assume a discount rate of 10%.

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