Cardinal Company is considering a five-year project that would require a $2,945,000 investment in equipment with a useful life of five years and no salvage value. The companys discount rate is 18%. The project would provide net operating income in each of five years as follows: Sales $ 2,873,000 Variable expenses 1,019,000 Contribution margin 1,854,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 754,000 Depreciation 589,000 Total fixed expenses 1,343,000 Net operating income $ 511,000

2-a.	What are the projects annual net cash inflows?

2-b.

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.)

5.	What is the project profitability index for this project? (Round discount factor(s) to 3 decimal places and final answer to 2 decimal places.)