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Cardinal Company is considering a project that would require a $2,782,000 investment in equipment with a useful life of five years. At the end of

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Cardinal Company is considering a project that would require a $2,782,000 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 $200,000. The company's discount rate is 18%. The project would provide net operating income each year as follows: $2,873,000 1,019,000 1,854,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $754,000 516,400 1,270, 400 $ 583,600 Required: What are the project's annual net cash inflows? Annual net cash inflow

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