O Required information (The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,765,000 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: $ 2,851,000 1,150,000 1,701,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 670,000 553,000 1,223,000 $ 478,000 Click here to view Exhibit 148.1 and Exhibit.148:2. to determine the appropriate discount factor(s) using table. 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. Any boxes left with a question mark will be automatically graded as incorrect) Sales Variable expenses ped Click here to view Exhibit:14B-1 and Exhibit 14B-2. to determine the appropriate discount factor(s) using table. bok int 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. Any boxes left with a question mark will be automatically graded as incorrect.) rences Sales Vortable expenses Advertising, salaries, and other foxed out of pocket costs expenses 2 Depreciation expense Variable expenses 1,150,000 Contribution margin 1,701,000 Fixed expenses : Advertising, salaries, and other fixed out-of-pocket costs $ 670,000 Depreciation 553,000 Total fixed expenses 1,223,000 Net operating income $ 478,000 Click here to view Exhibit 148-1 and Exhibit 14B-2. to determine the appropriate discount factor(s) using table. hces 2. What are the project's annual net cash inflows? Annual net cash inflow 1,701,000 Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 670,000 553,000 1,223,000 5 478,000 Click here to view Exhibit 148-1 and Exhibit 148:2. to determine the appropriate discount factor(s) using table. 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 Click here to view Exhibit 148-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table 4. What is the project's net present value? (Round final answer to the nearest whole dollar amount.) Net present value
