Cardinal Company is considering a five$-$year project that would require a $$2,755,000$ investment in equipment with a useful life of five years and no salvage value. The company$$s discount rate is $14\%.$ The project would provide net operating income in each of five years as follows:

Sales $ $2,875,000$

Variable expenses $1,124,000$

Contribution margin $1,751,000$

Fixed expenses:

Advertising, salaries, and other fixed out$-$of$-$pocket costs $ $721,000$

Depreciation $551,000$

Total fixed expenses $1,272,000$

Net operating income $ $479,000$

Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using table.

Foundational $12-3($Algo$)$

$3.$ What is the present value of the project$$s annual net cash inflows?