Cardinal Company is considering a five$-$year project that would require a $$2,870,000$ investment in equipment with a useful life of five years and no salvage value. The company's discount rate is $12\%.$ 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

Net operating income

$$2,861,000$

$1,101,000$

$1,760,000$

$$705,000$

$574,000$

$\backslash$table$[[1,279,000$