3) what is the present value of the projects annual net cash inflows ?

4)what is the present value of the equiptments salvage valhe at the end of five yesrs?

5)what is the projects net present value?

6) what is the projects profitablitiy index for this project?

7)what is the projects payback period ?

8)what is the projects simple rate kf rethrn for each of the five years ?

12) if the equiptments salvage value was $500,000 instead of $300,000 what would be the projects simple rate of return?

13) assume a postaudit showed that all estimates were exactly correct except for the variable expense ratio, which actually turned our to be 45%. what was the projects actual net present value ?

Cardinal Company is considering a project that would require a $2,975,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $300,000. The company's discount rate is 14%. The project would provide net operating income each year as follows: Sales Variable expenses $ 2,735,000 1,000,000 1,735,000 Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation $ 735,000 535,000 Total fixed expenses 1,270,000 Net operating income $ 465,000