part 3. what is the present value?

part 4. what is the return on total assets (assuming a 30% tax rate)

part 13. what is the net present value?

Ccm Required information The Foundational 15 (LO12-4, L012-2, L012-3, LO12-5, L012-6) [The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,975,000 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: $2,735,000 1,000,000 1,735.000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 735,000 595,000 1,230.000 $405,000 Click here to view Exhibit 128-1 and Exhibit 128-2 to determine the appropriate discount factor(s) using table. Foundational 12-3 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 $ 457.000 Ending Beginning Balance Balance Cash $ 35,000 $ 30,000 Accounts receivable $ 60,000 $ 50,000 Inventory $ 55,000 $ 60,000 Current assets $ 150,000 $ 140,000 Total assets $ 450,000 $ 460,000 Current liabilities $ 60,000 $40,000 Total liabilities $ 130,000 $ 120,000 Common stock, $1 par value $ 120,000 $ 120,000 Total stockholders' equity $ 320,000 $340,000 Total liabilities and stockholders' equity $ 450,000 $ 460,000 Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $ 700,000 $ 400,000 $ 300,000 $ 140,000 $ 8,000 $ 92,400 national 15 You received no credit for this question in the previous attempt. Check my work Total assets $450,000 $ 460,000 Current liabilities $ 60,000 $ 40,000 Total liabilities $ 130,000 $ 120,000 Common stock, $1 par value $ 120,000 $ 120,000 Total stockholders' equity $ 320,000 $340,000 Total abilities and stockholders' equity $450,000 $ 460,000 Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $ 700.000 $ 400,000 $ 300,000 $ 140,000 $ 8,000 $ 92,400 Foundational 14-4 4. What is the return on total assets (assuming a 30% tax ratej? (Round your percentage answer to 1 dedmal place (.e., 01234 should be entered as 12.3)) Return on total assets 30.8% MacBook Air Cardinal Company is considering a five-year project that would require a $2,975,000 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: $ 2,735,000 1,000,000 1,735,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 735,000 595,000 1,330,000 405,000 $ Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using table. Foundational 12-13 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 45%. 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.) Net present value $ 334,934