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i need help with the below accounting assignment kindly help me guys. thanks [The following information applies to the questions displayed below.] Cardinal Company is

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i need help with the below accounting assignment kindly help me guys.

thanks

image text in transcribed [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $3,025,000 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 Variabl e expens es Contri bution margin Fixed expens es: Adverti sing, salaries , and other fixed out-ofpocket costs $ Depre ciation $ 2,737,000 1,001,000 1,736,000 610,000 605,000 Total fixed expens es Net operatin g income 1,215,000 $ 521,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. 1. 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.) Sales Variable expenses Advertising, salaries, and other fixed out-of-pocket costs expenses Depreciation expense 2. 2-a. What are the project's annual net cash inflows? 2-b. What is the present value of the project's annual net cash inflows? (Round discount factor to 3 decimal places) 3. 3. What is the project's net present value? (Round discount factor(s) to 3 decimal places and final answer to the nearest whole dollar amount.) 4. 4 What is the project profitability index for this project? (Round discount factor(s) to 3 decimal places and final answer to 2 decimal places.) 5. 5 What is the project's internal rate of return? (Round your answer to nearest whole percent.) 6. 6 What is the project's payback period? (Round your answer to 2 decimal places.) 7. 7 What is the project's simple rate of return for each of the five years? (Round your answer to 2 decimal places. i.e. 0.12342 should be considered as 12.34%.) 8. 9. If the company's discount rate was 18% instead of 16%, would you expect the project's net present value to be higher, lower, or the same? Higher Lower Same 9. 10. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's payback period to be higher, lower, or the same? Higher Lower Same 10. 11. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's net present value to be higher, lower, or the same? Higher Lower Same 11. 12. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's simple rate of return to be higher, lower, or the same? Higher Lower Same 12. 13. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 50%. What was the project's actual net present value? (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate calculations and final answer to the nearest whole dollar amount.) 13. 14. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 50%. What was the project's actual payback period? (Round your answer to 2 decimal places.) 14. 15. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 50%. What was the project's actual simple rate of return? (Round your answer to 2 decimal places. i.e. 0.12342 should be considered as 12.34%.)

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