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I tried 0.25 and it said it was wrong, thanks in advance Required information [The following information applles to the questions displayed below.) Cardinal Company
I tried 0.25 and it said it was wrong, thanks in advance
Required information [The following information applles to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,855,doo 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: Sales $ 2,867,000 Variable expenses 1,125,000 Contribution margin 1742,000 Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs $ 706,000 Depreciation 571,000 Total fixed expenses 1,272,000 Net operating income $ 465,000 Click here to view Exhibit 128-1 and Exhibit 2B-2. to determine the appropriate discount factor(s) using table. 5. What is the profitability index for this project? (Round your answer to 2 decimal places.) Profitability index Step by Step Solution
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