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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

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 fixed out-of-pocket costs $ 753,000
Depreciation 591,000
Total fixed expenses 1,344,000
Net operating income $ 509,000
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.)

Net present Value:_______

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.)

Project profitability index:_______

6. What is the projects internal rate of return? (Round your answer to nearest whole percent.)

Project's internal rate of return:_________%

7.What is the projects payback period? (Round your answer to 2 decimal places.)

Project's payback period:_________years

8.

What is the projects simple rate of return for each of the five years? (Round your answer to 2 decimal places. i.e. 0.12342 should be considered as 12.34%.)

simple rate of return:________%

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