Chapter 14 - Post Test - Algorithmic 5 Part 5 of 15 10 points eBook Print References Required information Saved The Foundational 15 (Algo) [LO14-1, LO14-2, LO14-3, LO14-5, LO14-6] [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,810,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 16%. The project would provide net operating income in each of five years as follows: Sales Variable expenses Contribution margin $ 2,847,000 1,121,000 1,726,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation $ 782,000 562,000 Total fixed expenses Net operating income 1,344,000 $ 382,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. Foundational 14-5 (Algo) 5. What is the profitability index for this project? (Round your answer to 2 decimal places.) Profitability index Help