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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 salvage

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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 salvage value. The company's discount rate is 14%. The project would provide net operating Income in each of five years as follows: $ 2,741,000 1,125,000 1,616,000 Sales Variable expenses Contribution margin Tixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 642,000 561,000 1. 203,000 $. 413,000 Click here to view Exhibit 123.1 and Exhibit 120.2. to determine the appropriate discount factor(s) using table. EXHIBIT 12B-2 Present Value of an Annuity of $1 in Arrears: 1/(1-1/(1+r))) % 3.9 125 15% 17 * 99 E ZSCELEVIZISE 09 RSS COM 2029 SGV9S089 Periods 49 59 75 99 104 11 135 14 169 18% 1997 20 21% 229 23 249 25 1 0.9620952093 09350926 0917 0.09 0.901 0.89308850 877 0.870 0.862 0.855 0.847 0.840 0.833 0.82608200.813 0.8060 500 2 1886 1859 1833 1 MON 1.781.759 1.736 1.713 1690 1.66% 1.647 16261.003 1.585 1 566 1.547 1.528 15091492 1474 1 AS7 1.440 3 2775 2.723 2673 2624 2577 25312487 2444 2.402 236123222282246 2210 2.1742.140 2106 2074 2042 2011 1981 1.952 4 3.60 3.5463465 3.387 33123.240.1703.102 3.037 2.974291428552.798 2.743269020392.5892540 2.49624482404 2362 5 4452 43294212 4.100 3993 3.890 3.791 3026 3.2743.1993.127 3.058 2.991 2.926 2.864 2.803 27452.659 6 15.2423.07649174,767 4,621 4.486 4.355 4.231 4.1113.9983.8893.784 36853.5893498 341033263.245 3.1673.0923.0202951 7 6.0025.786 5582 5.2065033486842712456444234.288 4.100 4.039 3.92238123.706 3.6053.50834163.3273.2423.161 6.733 64636.210 5.971 3.74723535 5335 5.14649684.799 46394482 4.3444.2024.078 3.956 3.8373.72636193.5183421 3.329 9 7A357.100 6515624759955.75955375.328 5.132 496 4,77246074451 43034.1614031 3.905 3.786 3.67335663463 10 8.1117.722736070246.710 6418 6.1455889 5.650542632165101948334.639449443394.1924.0543923 3.79936823571 11 6760 3.306 788774997139 5.93556875453 5.2345.029 483646564.486 4.327 4.17740353.9023.7767656 12 9.38 8.363 34 7.9437536 7.161 681464926.195.9185.660342115.197 498842793461114439142784.127 3.985 38513.725 13 9.9569.394 8.8538358 7.905 7.487 17.1036.750 64246.12238425.5835342 5.1184.9104.71543334.3624203405339123.780 14 10.563999 9.295 2.745 81244 7786736769826,6283 6.302 6.0025222413468 5.2295008 4 802 4.611 4432 4.2054.10535623.824 15 11.118 10 309,712 9.10 8.559 8.061760767191 6811 6.462 6.142 5.847 3575 5324 5.092 4.876 4.675 4489 4.315 14.153413859 16 11.652 10.83 10.10094478851 8.313282412379 69740.004 6.26559543.668 540S15.16249154.7.20433643574.189 40 3.887 17 11 274 10477 9.763 9.12 8.54 8.02273492120 6.7296.373 6047 5.709 73 3222 4.990 4.7754576 14.3914.2194503913910 IN 1265911.690 10.828 10.05993726756120127027.250 6840 64676128581815345273 50334812 4.608 4419 4243 19 131412085111310169004 950236528973666935 65506.19638713,5843316 36704.843 4615444242 0973942 20 113300 1240211470 10594981819.129 8514179740970256,023625939293628533535.1014870476574460427941103934 21 147029 1282111.764 10.836 10.0179292.619 07573627.102 66763125975135841311274.891 46754442024.121 3963 22 14.451 13163 1201211061 10,201 944227722 3.1767645 1706.7436596011 5.69654103149909 404 402 4.130 3910 23 1457134891210211272 10.371 9.5808.883 8.2667.718 720 6.292660413723 3432 5.167 4.925 47034499 1431141373,976 24 154713399 1255011469105299.707 8.95 8.3487714 7.23 6835 641460735.7654515152437470307318410391 25 115.622 14.094 12731150 110015907422 42330675464657475.1951498 4721451463294.1025 26 159162751570011220 TONO 99299161702172600V1.1357574N05.200493672320422 27 1166110H 109051003758409601565192521514.901324 43327153.900 1166111100116781027441 665146.15215310155025234970244528405 4.1592 100 101 WI273 LINALOL127026 0270626551 520350522949232454524 30 1922HOS LEAO LLEN10701050/2000 29795905 40 192939 016329911092799540101056626351351400434643669 ZOONOT EVOLUS T e CACHAS LOISGLOCK STVO MacBook Air EXHIBIT 120-1 Present Value of $11(1+r) 39 958 SSWO LECO OSTO 1000 FOIO 19110 LLSO SOSO Periods 49 59 72 105 11% 124 135 145 15% 165 175 189 19% 20% 215 225 239 245 25 1 0.962 0.952 0.943 09350926 0917 0.909 0.901 0.893 0.885 0877 0.870 0.862 0.855 08470840 08330826 0.820 0.813 0.8060.800 2 0925 0.9070.890 0.873 08570842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.7180.706 0.698 0.683 0672 0.661 0.650 0.600 3 0889 0.864 08400816 0.7940.772 0.751 0.731 0.712 0.693 0.625 0.65% 0641 0.62406090593057905640551 0.537 0.524 0.312 4 0.8230.792 0.763 0.735 0.708 0.6830.659 0636 0.613 0.592 0.572 0.55205340.516 0499 042 046704510437 0.423 0.410 5 0.822 0.78 0.7470.713 0681 0.650 0,621 0.593036705430319049704760456 0437 0419 0.4020286 0.370 035 0341 0.37 6 0.790 0.746 0.705 0.666 0.630 0.596 0.5640535 0.507 04800A5604320 4100.390 0.300.3520335 033190 303 0.29 0.275 0.262 7 0.760 0.711 0.668 0.623 0.33 0547 051304820452 0425 0.400 0.37604154 0.33303140.296 02790263 0.2490.235 0.222 0210 8 0.731 0.677 0.62705820540 0.502 0.46704340404 0.3760351 0.3270315 0.285 0.2660249 0.233 0.21802040.1910.1790.168 9 0.703 0.6450.5920.544 0.500 0.460 04240391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0209 0.1940 180 0.167 0.155 0.144 0.134 10 0.6760614 0.35 O SON 0.463 04220.386 0.352 0.122 0.295 0270 0.2470.227 0.208 0.19 0.16 0.1620.149 0.13701260.116 0.107 11 0.650 0.5KS 0.5270475 0429 0388 0250 0317 0.287 0.261 0215 10.1950.178 0.162 0.14 0.115 0.123 0.112 0.1030090086 12 0.625 0.357 0.497 04660397 0356 0.319 0.286 0.257 0231 0.208 0.187 0.168 0.152 0.1370.1240.112 0.1020092003 0.076 0.069 13 0,601 0.530 0.400.4150365 0326 0.290 0.25% 0229 0.20+ 0.182 0.163 0.145 0.084 0.025 0.068 0.001 0.055 14 0.442 0.38% 0.30 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0 069 0.062 0055 0.04190044 15 0.5550.481 0417 0.362 0.315 02750239 0209 0,183 0.160 0.10 0.123 0.16 0.095 0.084 0.0740065 0.057 0.051 0.045 0.000 0.035 16 0.534 DASS 0.394 0.3390.292 0.22 0.213 0.188 0.160.1410.230.1070.093 0.081 0.071 0.062 0.054 0.047 00120016 0.032 0.028 17 0.313 0.4360371 03170.270 0.23 0.1980.1700146 0.125 0.108 0.093 0.069 0.050 0052 0.045 0.039 | ODH 0.03 0.0260023 04940416 0.350 0.296 0.250 0212 0.150 00153 0.130 0.11 0.095 CONTOX 00000510064 0.038 0032002500240021 0.018 19 0473 0.390 0.31 0.277 10202 0.19 0.164 0.18 0.116 0.098 0.083 0.070 0.00 0.051 OD 0037 ODIO 270020020 0.0170.014 20 0456077031120.2580215 0.17 0.149 0.12 0.106 0.087 0.073 0.061 0043 0037 0.031 0.026002200190100014 0.012 21 0419 0339094 02420 1990.100.150.11201093 0.0 0.064 0053 0064 D.087 0.031002 0.022 OOR 0.015003 0.0110.000 22 0422 0.342027 0.226 0.1840.15001230.101 DO 0.06 0.0560046008 0.03200260022001800150013 001 0.0090.1007 9.4000 0.2630211 0.1700160.11200910074 ODOO 10.01900002 0.033 0.027 0.022 0.018 0015 OD12 ODIO 0.0090.000.000 24 0.300.310103470.1970.155 01260 1020082 0.006 005 0043 0.035 0.008 0023 0.019 FOTOTS 0013 ODIO 0.008 0007 25 0375029592301840146 0.116 0092010.05900470.008 0.0300024 0.02000160010010 0.0090.007 0.003 26 0361 0.281 0220 D2005 0.106006600530002000 0,036 0.001 00170014001000000000 000410003 22 0.207 0.161 0.125 0.098 0026000 010037 0.02 0.020 ODIS 0014 0011 0.000 0.007 ODOS 0.0040.003 0.002 29 0.330255 0.1996 0.50 0.116 0090 0009 0.0540012 0.033 0.000 0.00 ODIO 120100008 0.004 0.003 01002 01002 29 03210243 0.125 0.14 0.102 002 0.06 0048 007029002 0.017 OD TO TODOS 0.000 0.005 0.006 0.003 0.002 0.002 0.002 0.08 0.23 0.17405000750057 0.044 0.03 0.026 020 015120.0090.0070005 0004 0.003 0.001 0.002 0.002 0.001 40 10:30 TOT 20.097 0.00 0.00 0.002 0.022001S0011 0.00 0.00 0.00 0.00 0.002 0.001 0.001OOOOOXXOOOOOOOOOO0.000 ONUD NE ISOO SOO 9000 COOO BOTO WO 0.005 O NUO 9000 SOOO 9000 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 rolum 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 50%. What was the project's actual net present value? (Negative amount should be indicated by a minus sign. Round Intermediate calculations and final answer to the nearest whole dollar amount.) Not present value 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 50%. What was the project's actual payback period? (Round your answer to 2 decimal places.) Payback period years 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 50%. What was the project's actual simple rate of return? (Round your answer to 2 decimal places.) Simple rate of retum

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