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5 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
5 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 19%. The project would provide net operating income in each of five years as follows: Persos 004200 $ 2,059,000 1.100,000 1,750,000 Sales Variable expenses Contribution or Fixed pense Advertising salaries, and other find out of-pocket costs Depreciation Total fixed expenses tot operating income $700.000 52.000 1.272.000 Click here to view Exhibit28.1 and Exhibit 120.2. to determine the appropriate discount factors) using table 5. What is the profitability index for this project? (Round your answer to 2 decimal places.)
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