Cardinal Company is considering a project that would require a $2,815,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. The company's discount rate is 16%. The project would provide net operating income each year as follows: Sales Variable expenses $2,863,000 1,014,000 Contribution margin 1,849,000 Advertising, salaries, and other fixed out-of-pocket $781,000 483,000 Fixed expenses: costs Depreciation Total fixed expenses Net operating income Required: What are the project's annual net cash inflows? Annual net cash inflow 1,264,000 $ 585,000