2-a. What are the projects annual net cash inflows?

2-b. What is the present value of the projects annual net cash inflows? (Round discount factor to 5 decimal places)

3. What is the projects net present value? (Round discount factor(s) to 3 decimal places and final answer to the nearest whole dollar amount.)4. What is the project profitability index for this project? (Round discount factor(s) to 3 decimal places and final answer to 2 decimal places.)

4. What is the project profitability index for this project? (Round discount factor(s) to 3 decimal places and final answer to 2 decimal places.)

5. What is the projects internal rate of return? (Round your answer to nearest whole percent.)

6. What is the projects payback period? (Round your answer to 2 decimal places.)

7. What is the projects simple rate of return for each of the five years? (Round your answer to 2 decimal places. i.e. 0.12342 should be considered as 12.34%.)

Required information [The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $3,025,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 16%. The project would provide net operating income in each of five years as follows: $2,737,000 1,001,000 1,736,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other out- of-pocket costs Depreciation Total fixed expenses Net operating income $610,000 605,000 1,215,000 $ 521,000 (Hint Use Microsoft Excel to calculate the discount factor(s).) Required: 1. Which item(s) in the income statement shown above will not affect cash flows? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Sales ? Variable expenses 2 Advertising, salaries, and other fixed out-of-pocket costs expenses 2 Depreciation expense