! Required information [The following information applies to the questions displayed below.] Cardinal Company is considering...
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! Required information [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project requiring a $2,500,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other $ 2,853,000 1,200,000 1,653,000 fixed out-of-pocket costs Depreciation Total fixed expenses $ 790,000 500,000 1,290,000 Net operating income $ 363,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. ! Required information [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project requiring a $2,500,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other $ 2,853,000 1,200,000 1,653,000 fixed out-of-pocket costs Depreciation Total fixed expenses $ 790,000 500,000 1,290,000 Net operating income $ 363,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table.
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