Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

asnwer both please same numbers 4 Required information [The following information applies to the questions displayed below) Cardinal Company is considering a five-year project that

asnwer both please same numbers
image text in transcribed
image text in transcribed
4 Required information [The following information applies to the questions displayed below) Cardinal Company is considering a five-year project that would require a $2860,000 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: Part 4 of 15 os $ 2,659,000 1.100,00 1,750,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out of-pocket costs Depreciation Total fived expenses Net operating Income $ 700,000 52.000 1,272,000 $ 487,000 Click here to view Exhibit12B1 and Exhibit 128-2. to determine the appropriate discount factors using table. 4 What is the project's net present value? (Round final answer to the nearest whole dollar amount) prola 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 14%. The project would provide net operating income in each of five years as follows: Part 5 of 15 SON Sales $ 2,059,000 Variable expenses 1.100.000 Contribution margin 1,759,000 Fixed expenses Advertising, salaries, and other fixed out of-pocket costs $700,000 Depreciation Total fixed expenses 1,172, het operating income 5487,000 Click here to view Ext 128:1 and Exhi: 128-2, to determine the appropriate discount factor(s) using table 5. What is the profitability Index for this project? (Round your answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 21 - Cash From Operations Cons

Authors: Kate Mooney

1st Edition

0071719431, 9780071719438

More Books

Students also viewed these Accounting questions

Question

Obtain the following z-scores. a. z0.20 b. z0.06

Answered: 1 week ago

Question

c. What type of degree does it offer?

Answered: 1 week ago