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 companys discount rate is 14%. The project would provide net operating income in each of five years as follows: Sales $ 2,735,000 Variable expenses 1,000,000 Contribution margin 1,735,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 735,000 Depreciation 595,000 Total fixed expenses 1,330,000 Net operating income $ 405,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. 1. value: 10.00 points Required: 1. Which item(s) in the income statement shown above will not affect cash flows? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Sales Variable expenses Advertising, salaries, and other fixed out-of-pocket costs expenses Depreciation expense check my workreferencesebook & resources 2. value: 10.00 points 2-a. What are the projects annual net cash inflows? 2-b. What is the present value of the projects annual net cash inflows? (Round discount factor to 3 decimal places.) check my workreferencesebook & resources eBook: Compute the simple rate of return for an investment. eBook: Determine the payback period for an investment. eBook: Evaluate the acceptability of an investment project using the internal rate of return method. eBook: Evaluate the acceptability of an investment project using the net present value method. eBook: Rank investment projects in order of preference. 3. value: 10.00 points 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.) check my workreferencesebook & resources 4. value: 10.00 points 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.) check my workreferencesebook & resources 5. value: 10.00 points 6. What is the projects internal rate of return? (Round your answer to nearest whole percent.) check my workreferencesebook & resources 6. value: 10.00 points 7. What is the projects payback period? (Round your answer to 2 decimal places.) check my workreferencesebook & resources 7. value: 10.00 points 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%.) check my workreferencesebook & resources 8. value: 10.00 points 9. If the companys discount rate was 16% instead of 14%, would you expect the project's net present value to be higher, lower, or the same? Higher Lower Same check my workreferencesebook & resources 9. value: 10.00 points 10. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the projects payback period to be higher, lower, or the same? Higher Lower Same check my workreferencesebook & resources 10. value: 10.00 points 11. 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? Higher Lower Same check my workreferencesebook & resources 11. value: 10.00 points 12. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the projects simple rate of return to be higher, lower, or the same? Same Lower Higher check my workreferencesebook & resources 12. value: 10.00 points 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 projects 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.) check my workreferencesebook & resources 13. value: 10.00 points 14. 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 projects actual payback period? (Round your answer to 2 decimal places.) check my workreferencesebook & resources 14. value: 10.00 points 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 projects actual simple rate of return? (Round your answer to 2 decimal places. i.e. 0.12342 should be considered as 12.34%.) check my workreferencesebook & resources