14 Part 14 of 15 8012936 Required information [The following information applies to the questions displayed below) Cardinal Company is considering a five-year project that would require a $2,860,000 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: Sales $ 2,859,000 Variable expenses 1,100,000 Contribution margin 1,759,000 Fixed expenses: Advertising, salaries, and other fixed out of-pocket costs $700,000 Depreciation 572.000 Total fixed expenses 1,272,000 Net operating income $ 487,000 Click here to view Exhibit 128:1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. 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 50% What was the project's actual payback period? (Round your answer to 2 decimal places.) Payback period years 12 Required information The following information applies to the questions displayed below) Cardinal Company is considering a five-year project that would require a $2.860,000 investment in equipment with a useful life of five years and no salvage value. The company's din contrate is 14% The project would provide niet operating income in each of five years as follows: Part 12:15 2 13,850,00 1.100,00 1.719,00 Sales Variable Contribution warga Pined expenses Advertisin salaries, and other fried out of-pocket coats Deprection Total fixed Net operating incon 120.000 17. 122.000 3417, Click here to view Exbibit 120.3 and Exhibit 23.2. to determine the appropriate discount factors using table 12. the equipment had a salvage value of $300.000 at the end of five years, would you expect the project's surple rate of return to be higher, lower, or the same? Higher O Lower Same