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ardinal Compary is considering a five-year project that would requine a $2,975,000 investment in equipment with a useful life of five years and no salvage

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ardinal Compary is considering a five-year project that would requine a $2,975,000 investment in equipment with a useful life of five years and no salvage value. company's divcount rate is 14\%. The project would provide net operating income in each of five yean as follow: 8. What is the projoct s simple nte of return for each of the five years? 9. If the company's discount nate was 16% instead of 14%, would you expect the project's net present value to be higher than, lower than, or the sarne as your answer to royoirement 4? No coenputations are necestary. 10. If the equipment had a salvage value of 5300,000 at the end of five years, would you expect the project's payback period to be highter than, lower than, or the kame as your asswer to requirement 7? No computations are necessary. 11. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's net present value to be higher than, lower than, of the same as your answer to roquirement 37 No computations are necessary. 12. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's simple rate of return to be higher than, lower than, of the sume as your answier to requirement 87 No conputations are necesiary. 13. Asxume a postadit showed that all estimates (inclading 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? 14. Assume a potadit 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? 15. Asrame a poitudit ahowed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually tumed out to be 45\%. What was the project's actual simple rate of retum

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