Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating Income in each of five years as follows: $ 2,735,888 1,000,000 1,735,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 735,000 595,290 1,330,000 $ 405,000 Click here to view Exhibit 128.1 and Exhibit 128.2. to determine the appropriate discount factors) using table Foundational 12-5 5. What is the project profitability Index for this project? (Round your answer to 2 decimal places.) Project profitability index 5 O Le ch Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: $ 2,795,000 1,000,00 1,735,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 735,000 595,000 1,330,000 405,000 Click here to view Exhibit 128.1 and Exhibit 128-2. to determine the appropriate discount factors) using table, Foundational 12-8 8. What is the project's simple rate of return for each of the five years? (Round your answer to 2 decimal places.) Simple rate of return to search 56% L Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: $ 2,735,000 1,000,000 1,735,888 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income 5735,880 595,000 1,330,000 $ 405,000 Click here to view Exhibit 128-1 and Exhibit 128.2. to determine the appropriate discount factor(s) using table. Foundational 12-13 13. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio. which actually turned out to be 45%. What was the project's actual net present value? (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate calculations and final answer to the nearest whole dollar amount.) Net present value 3D 558 search Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: $ 2,735,800 1,980,000 1,735,800 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income 5 735,000 595,600 1,330,eee $ 405,000 Click here to view Exhibit 128:1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using table. Foundational 12-14 14. Assume a postoudit showed that allestimates (including total sales) were exactly correct except for the variable expense ratio. which actually turned out to be 45%. What was the project's actual payback period? (Round your answer to 2 decimal places.) Payback period years earch o ! Cardinal Company is considering a five-year project that would require a $2.975,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: $ 2,735,000 1,089.ee 1,735,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 735,000 595,000 1,330,000 5 405,000 Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. Foundational 12-15 15. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio. which actually turned out to be 45%. What was the project's actual simple rate of retum? (Round your answer to 2 decimal places.) Simple rate of return 8 15
