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a) what is the present value of the projects annual net cash inflows? b) what is the projects net present value? c) what is the
a) what is the present value of the projects annual net cash inflows?
b) what is the projects net present value?
c) what is the profitability index for this project?
d) what is the projects internal rate of return?
e) what is the projects payback period?
f) what is the projects simple rate of return for each of the five years?
i would greatly appreciare it if you can answer these questions. I will leave a great review! thank you!
[The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project requiring 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 Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other. fixed out-of-pocket costs Depreciation Total fixed expenses $ 2,859,000 1,100,000 1,759,000 $ 700,000 572,000 1,272,000. $ 487,000 Net operating income Present Value Tables provided earlier in exam.
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