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Cardinal Company is considering a five-year project that would require a $2,500,000 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 $2,500,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: 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. Any boxes left with a question mark will be automatically graded as incorrect.) Sales Variable expenses Advertising. salaries, and other fored out-of-pocket costs expenses Depreciation expense 2. What are the project's annual net cash inflows? 3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.) 5. What is the profitability index for this project? (Round your answer to 2 decimal places.) 6. What is the project's internal rate of return? 7. What is the project's payback period? (Round your answer to 2 decimal places.) 8. What is the project's simple rate of return for each of the five years? (Round your answer to 2 decimal places.) 3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.) 4. What is the project's net present value? (Round final answer to the nearest whole dollar amount.) 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.) 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.) 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.)

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