Question
cardinal company is considering a project that would require a 2810000 investment in equipment with a useful life of five years at the end of
cardinal company is considering a project that would require a 2810000 investment in equipment with a useful life of five years at the end of five years the project would be terminate and equipment would be sold for its salvage value of 500000 the companys discount rate is 16% the project would provide net oprating income each and every years salea2847000 variable expenses 1121000 contribution margin 1726000 fixed expenses advertising782000 deprication 462000 total fixed expenses 1244000 net operating income 482000 whats the projects annual net cash inflows what is the present value of the projects annual net cash inflows what is the present value of the equipments salvage at end of five years whats is the project net present value
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