Chapter 14 Homework A Saved Help Save & 1 Required information [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,955,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating income in each of five years as follows: Part 1 of 4 1 points $2,865,000 1,015,000 1,850,000 Sales Variable expenses Contribution margin Fixed expenses : Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income eBook $750,000 591,000 1,341,000 509,000 Print Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. References Required: 1. Which item(s) in the income statement shown above will not affect cash flows? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) U Sales Variable expenses Advertising, salaries, and other fixed out-of-pocket costs expenses Reto 2 Required information [The following information applies to the questions displayed below.) Part 2 of 4 Cardinal Company is considering a five-year project that would require a $2,955,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating income in each of five years as follows: 1 points Sales $2,865,000 1,015,000 1,850,000 Variable expenses Contribution margin Fixed expenses : Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 750,000 591,000 1,341,000 $ 509,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. 2. What are the project's annual net cash inflows? Annual net cash inflow 3 Required information [The following information applies to the questions displayed below.] Part 3 of 4 Cardinal Company is considering a five-year project that would require a $2,955,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating income in each of five years as follows: 1 points $2,865,000 1,015,000 1,850,000 eBook Sales Variable expenses Contribution margin Fixed expenses : Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 750,000 591,000 Print 1,341,000 $ 509,000 References Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. 3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.) Present value Check my v 4 Part 4 of 4 Part 4 of a Required information {The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,955,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating income in each of five years as follows: 1 points $2,865,000 1,015,000 1,850,000 eBook Sales Variable expenses Contribution margin Fixed expenses : Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income Print $ 750,000 591,000 1,341,000 $ 509,000 References Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. 4. What is the project's net present value? (Round final answer to the nearest whole dollar amount.) Net present value