I need these two questions answered please. I attached a word document with the 2 questions, thanks.

Cardinal Company is considering a project that would require a $2,975,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $300,000. The company's discount rate is 14%. The project would provide net operating income each year as follows: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation $ 2,735,000 1,000,000 1,735,000 $ 735,000 535,000 Total fixed expenses Net operating income 1,270,000 $ 465,000