Cardinal Company is considering a five-year project that would require a $2,955,000 investment in equipment with a useful life of five years and no salvage value. The companys discount rate is 16%. The project would provide net operating income in each of five years as follows: Sales $ 2,871,000 Variable expenses 1,018,000 Contribution margin 1,853,000 Fixed expenses: Advertising, salaries, and other out-of-pocket costs $ 753,000 Depreciation 591,000 Total fixed expenses 1,344,000 Net operating income $ 509,000 (Hint: Use Microsoft Excel to calculate the discount factor(s).)

. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's net present value to be higher, lower, or the same?