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 companys discount rate is 12 The project would provide net operating income in each of five years as follows Sales $ 2,861,000 Variable expenses 1,101,000 Contribution margin 1,760,000 Fixed expenses Advertising, salaries, and other fixed out of pocket costs $ 705,000 Depreciation 574,000 Total fixed expenses 1,279,000 Net operating income $ 481,000 2a What are the projects annual net cash inflows 2b What is the present value of the projects annual net cash inflows (Round discount factor to 3 decimal places) 3 What is the projects net present value (Round discount factor(s) to 3 decimal places and final answer to the nearest whole dollar amount ) 4 What is the project profitability index for this project (Round discount factor(s) to 3 decimal places and final answer to 2 decimal places )

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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 companys discount rate is 12   The project would provide net operating income in each of five years as follows  Sales $ 2,861,000 Variable expenses 1,101,000 Contribution margin 1,760,000 Fixed expenses  Advertising, salaries, and other fixed out of pocket costs $ 705,000 Depreciation 574,000 Total fixed expenses 1,279,000 Net operating income $ 481,000 2a  What are the projects annual net cash inflows  2b  What is the present value of the projects annual net cash inflows  (Round discount factor to 3 decimal places) 3  What is the projects net present value  (Round discount factor(s) to 3 decimal places and final answer to the nearest whole dollar amount ) 4  What is the project profitability index for this project  (Round discount factor(s) to 3 decimal places and final answer to 2 decimal places )

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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

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Sales			$	2,861,000
Variable expenses				1,101,000

Contribution margin				1,760,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$	705,000
Depreciation		574,000

Total fixed expenses				1,279,000

Net operating income			$	481,000

2a. What are the projects annual net cash inflows? 2b. What is the present value of the projects annual net cash inflows? (Round discount factor to 3 decimal places) 3. What is the projects net present value? (Round discount factor(s) to 3 decimal places and final answer to the nearest whole dollar amount.) 4. What is the project profitability index for this project? (Round discount factor(s) to 3 decimal places and final answer to 2 decimal places.)