How to evaluate the success of the project


Quillen compnay 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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Accounting Basics: How to evaluate the success of the project
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