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1 3 . Required information [ The following information applies to the questions displayed below. ] Cardinal Company is considering a five - year project

13. Required information
[The following information applies to the questions displayed below.]
Cardinal Company is considering a five-year project that would require a $2,975,000 investment in
equipment with a useful life of five years and no salvage value. The company's discount rate is 14%.
The project would provide net operating income in each of five years as follows:
Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s)
using table. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the projects actual net present value?
14. Assume a post-audit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the projects actual payback period?
15. Assume a post-audit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the projects actual simple rate of return?
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