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Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage

Cardinal Company is considering a five-year project that would require a $2,975,000 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 $ 2,735,000
Variable expenses 1,000,000
Contribution margin 1,735,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs $ 735,000
Depreciation 595,000
Total fixed expenses 1,330,000
Net operating income $ 405,000

2-a. What are the projects annual net cash inflows?

2-b. What is the present value of the projects annual net cash inflows? (Round discount factor to 3 decimal places.)

3. What is the projects net present value? (Round discount factor(s) to 3 decimal places.)

5. What is the project profitability index for this project? (Round discount factor(s) to 3 decimal places and final answer to 2 decimal places.)

6. What is the projects internal rate of return? (Round your answer to nearest whole percent.)

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