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Cardinal Company is considering a project that would require a $2,765,000 Investment in equipment with a useful life of five years. Al the end of
Cardinal Company is considering a project that would require a $2,765,000 Investment in equipment with a useful life of five years. Al 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 12%. The project would provide net operating Income each year as follows: $2,861,000 1,101,000 1,760,000 Sales Variable expenses Contribution margin Pixed expenses Advertising, salaries, and other fixed out-of-pocket costo Depreciation Total fixed expenses Net operating income $ 705,000 513,000 1,218,000 $ 542.000 Required: What are the project's annual net cash inflows? Annual net cash inflow
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