Cardinal Company is considering a five year project that would require a $2,915,000 investment in equipment with a useful life of five years and no salvage value The companys discount rate is 16 The project would provide net operating income in each of five years as follows Sales $ 2,863,000 Variable expenses 1,014,000 Contribution margin 1,849,000 Fixed expenses Advertising, salaries, and other fixed out of pocket costs $ 781,000 Depreciation 583,000 Total fixed expenses 1,364,000 Net operating income $ 485,000 Click here to view Exhibit 14B 1 and Exhibit 14B 2, to determine the appropriate discount factor(s) using table What is the projects internal rate of return 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

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Cardinal Company is considering a five year project that would require a $2,915,000 investment in equipment with a useful life of five years and no salvage value  The companys discount rate is 16   The project would provide net operating income in each of five years as follows  Sales $ 2,863,000 Variable expenses 1,014,000 Contribution margin 1,849,000 Fixed expenses  Advertising, salaries, and other fixed out of pocket costs $ 781,000 Depreciation 583,000 Total fixed expenses 1,364,000 Net operating income $ 485,000 Click here to view Exhibit 14B 1 and Exhibit 14B 2, to determine the appropriate discount factor(s) using table  What is the projects internal rate of return  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

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Cardinal Company is considering a five-year project that would require a $2,915,000 investment in equipment with a useful life of five years and no salvage

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Sales			$	2,863,000
Variable expenses				1,014,000
Contribution margin				1,849,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$	781,000
Depreciation		583,000
Total fixed expenses				1,364,000
Net operating income			$	485,000