Cardinal Company is considering a five-year project that would require a $2,765,000 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		$ 2,851,000
Variable expenses		1,150,000
Contribution margin		1,701,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs	$ 670,000
Depreciation	553,000
Total fixed expenses		1,223,000
Net operating income		$ 478,000

1. Which item(s) in the income statement shown above will not affect cash flows?

2. What are the projects annual net cash inflows?

3. What is the present value of the projects annual net cash inflows? (Round your final answer to the nearest whole dollar amount.)

4. What is the projects net present value? (Round final answer to the nearest whole dollar amount.)