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 companys discount rate is 14%. The project would provide net operating income in each of five years as follows:

Sales Variable expenses Contribution margin Fixed expenses: $ 2,859,000 1,100,00e 1,759,0e0 Advertising, salaries, and other fixed out-of-pocket costs Depreciation 700,000e 572,000 Total fixed expenses Net operating income 1,272,000 $ 487,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table