1. Which item(s) in the income statement shown above will not affect cash flows? (Check all that apply).

• Salesunanswered
• Variable expensesunanswered
• Advertising, salaries, and other fixed out-of-pocket costs expensesunanswered
• Depreciation expenseunanswered

2. What are the project's annual net cash inflows?

3. What is the present value of the projects annual net cash inflows?

4. What is the projects net present value?

5. What is the project profitability index for this project?

6. What is the projects internal rate of return? %

7. What is the projects payback period? (Years)

8. What is the projects simple rate of return for each of the five years? %

9. If the companys discount rate was 16% instead of 14%, would you expect the project's net present value to be higher, lower, or the same? ( Higher / Lower / Same )

10. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the projects payback period to be higher, lower, or the same? ( Higher / Lower / Same )

11. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's net present value to be higher, lower, or the same? ( Higher / Lower / Same )

12. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the projects simple rate of return to be higher, lower, or the same? ( Higher / Lower / Same )

13. 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 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 payback period? Years

15. 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 simple rate of return? %

Required information The Foundational 15 (LO12-1, LO12-2, LO12-3, LO12-5, LO12-6) {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: 52,735,00 1,000, 1,735, DDD Variable experte Contribution margin Tised expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total led expenses Het operating incom 5 735,00 595,00 1,330,000 $ 405,000 Click here to view Exhibit 12B-1 and Exhibit 128-2, to determine the appropriate discount factors) using table