Cardinal Company is considering a five-year project that would require a $2,812,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 16%. The project would provide net operating Income in each of five years as follows: $ 2,855,000 1,010,000 1,845,000 Sales Variable expensen Contribution margin Fixed expennent Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expensen Net operating income $ 790,000 562,400 1,360,400 $ 484,600 Click here to view Exhibit 14B-1 and Exhibit 14B-2. to determine the appropriate discount factor(s) using table. 6. What is the project's internal rate of return? % Project's intemal rate of return Cardinal Company is considering a five-year project that would require a $2,812,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 16%. The project would provide net operating income in each of five years as follows: $ 2,855,000 1,010,000 1,845,000 Salen Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 798,000 562,400 1.360,400 $ 484,600 Click here to view Exhibit 143-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. 10. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's payback period to be higher, lower, or the same? Higher Lower Same Cardinal Company is considering a five-year project that would require a $2,812,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 16%. The project would provide net operating income in each of five years as follows: $ 2,855,000 1,010,000 1,845,000 Sales Variable expenses Contribution margin Fixed expenses! Advertising, salarion, and other fixed out-of-pocket conto Depreciation Total fixed expenses Net operating income $ 798,000 562,400 1,360,400 $484,600 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. er of five years, would you expect the project's simple rate of return to 12. If the equipment had a salvage value of $300,000 at be higher, lower, or the same? O Higher Lower Same