Cardinal Company is considering a five$-$year project that would require a $$2,812,000$ investment in equipment with a useful life of five years and no salvage value. The company$$s discount rate is $16\%.$ The project would provide net operating income in each of five years as follows:

Sales $ $2,855,000$

Variable expenses $1,010,000$

Contribution margin $1,845,000$

Fixed expenses:

Advertising, salaries, and other fixed out$-$of$-$pocket costs $ $798,000$

Depreciation $562,400$

Total fixed expenses $1,360,400$

Net operating income $ $484,600$