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Cardinal Company is considering a five-year project that would require a $2,805,000 Investment in equipment with a useful life of five years and no
Cardinal Company is considering a five-year project that would require a $2,805,000 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: Sales Variable expenses $ 2,741,000 1,125,000 1,616,000 Contribution margin. Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs $ 642,000 Depreciation 561,000) Total fixed expenses 1,203,000 Net operating income $ 413,000 Click here to view Exhibit 12B-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using table,
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