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:________%