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O Required information (The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,945,000 investment

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O Required information (The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,945,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating income in each of five years as follows: Sales $ 2,873,000 Variable expenses 1.019,000 Contribution margin 1,854,000 Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs $ 754,000 Depreciation 589,000 Total fixed expenses 1,343,000 Net operating income $ 511,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using table. 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? 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 ! Required information [The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,945,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating income in each of five years as follows: $ 2,873,000 1,019,000 1,854,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 754,000 589,000 1,343,000 $ 511,000 Click here to view Exhibit 12B-1 and Exhibit 12-2, to determine the appropriate discount factor(s) using table. 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? 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 Required information [The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,945,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating income in each of five years as follows: Sales $ 2,873,000 Variable expenses 1,019,000 Contribution margin 1,854,000 Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs $ 754,000 Depreciation 589,000 Total fixed expenses 1,343,000 Net operating income $ 511,000 Click here to view Exhibit 12B-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using table a 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

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