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Hi, This is the 2nd time I'm asking this question please answer the whole question. Pleaseee... Thanks Required information {The following information applies to the
Hi, This is the 2nd time I'm asking this question please answer the whole question. Pleaseee...
Thanks
Required information {The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2765.000 Investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating Income in each of five years as follows: $ 2,851, eee 1,150,000 1,701,600 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs Depreciation Total fixed expenses Net operating income $ 670,88 553,eee 1,223,eee $ 478,eee Click here to view Exhibit 128-1 and Exhibit 12B-2 to determine the appropriate discount factors) using table. Required: 1. Which item(sIn 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.) 2 Sales 2 Variable expenses ? Advertising, salaries and other fixed out-of-pocket costs expenses 2 Depreciation expense 2 What are the project's annual net cash inflows? Annual net cash inflow 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 4. What is the project's net present value? (Round final answer to the nearest whole dollar amount.) Net present value 5. What is the profitability Index for this project? (Round your answer to 2 decimal places.) Profitability index 6. What is the project's Internal rate of return? Project's internal rate of return 9. 7. What is the project's payback period? (Round your answer to 2 decimal places.) Project's payback period years 8. What is the project's simple rate of retum for each of the five years? (Round your answer to 2 decimal places.) Simple rate of returnStep by Step Solution
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