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Help Cardinal Company considering o five year project that would require a $2.850.000 investment in equipment with a useful life of five years and no
Help Cardinal Company considering o five year project that would require a $2.850.000 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 Income in each of five years as follows $2,857,000 1 011000 11,840,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total axed expenses Net operating income $299,000 1,369,000 477,000 Click here to view Ext 20 and 202 to determine the appropriate discount factors using table Foundational 12-15 15 Assume a postaudit showed that allestimates induding total sales were exactly correction the variable exponsert which actually turned out to be 45% What was the projects actual simple rate of return (Round your answembaca
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