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

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

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 50%. What was the projects actual net present value?

Required information [The following information applies to the questions displayed belowj Cardinal Company is considering a five-year project that would require a $2,855,000 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 Variable expenses Contribution margin Fixed expenses: $ 2,867,000 1,125,000 1,742,000 Advertising, salaries, and other fixed out-of-pocket costs Depreciation $706,000 571,000 Total fixed expenses Net operating income $ 465,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table