Acct Hw Help!!!

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 $2,735,000 Variable Expenses $1,000,000 Contribution Margin $1,735,000 Fixed Expenses: Advertising, Salaries, & other fixed out of pocket costs $735.00 Depreciation $535.00 Total Fixed Expenses $1,270,000 Net Operating Income $465.00 1. Which item(s) in the income statement shown above will not affect cash flows? (You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.) Sales Variable Exp Advertising Salaries & other fixed out of pocket Exp Depreciation Exp 2. What are the project's annual net cash inflows? 3. What is the present value of the project's annual net cash inflows? (Round discount factor(s) to 3 decimal places and final answer to the nearest dollar amount.) 4. What is the present value of the equipment's salvage value at the end of five years? (Round discount factor(s) to 3 decimal places and final answer to the nearest dollar amount.) 5. What is the project's net present value? (Round discount factor(s) to 3 decimal places and final answer to the nearest dollar amount.) 6. What is the project profitability index for this project? (Round discount factor(s) to 3 decimal places and final answer to 2 decimal places.) 7. What is the project's payback period? (Round your answer to 2 decimal places.) 8. What is the project's simple rate of return for each of the five years? (Round your answer to 2 decimal places.) 9. If the company's discount rate was 16% instead of 14%, would you expect the project's net present value to be higher than, lower than, or the same? 10. If the equipment's salvage value was $500,000 instead of $300,000, would you expect the project's payback period to be higher than, lower than, or the same? 11. If the equipment's salvage value was $500,000 instead of $300,000, would you expect the project's net present value to be higher than, lower than, or the same? 12. If the equipment's salvage value was $500,000 instead of $300,000, what would be the project's simple rate of return? (Round your answer to 1 decimal place.) 13. Assume a post audit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the project's actual net present value? (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, other intermediate calculations and final answer to the nearest whole dollar.) 14. Assume a post audit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the project's actual payback period? (Round your answer to 2 decimal places.) 15. Assume a post audit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the project's actual simple rate of return? (Round your answer to 2 decimal places.)