Pir Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segment and is considering dropping that product line. The following information is available regarding its canoe segment. (Leave no cells blank. Enter zeros where appropriate.) MARINETTE COMPANY Income Statement-Canoe Segment Sales $3,900,000 Variable costs Direct materials $ 830,000 Direct labor 880,000 Variable overhead 680,000 Variable selling and administrative 390,000 rotal variable costs 2,780,000 Contribution margin 1,120,000 costs 755,000 Indirect 680,000 Total fixed costs 1,435,000 Net income $ (315,000) Direct 1. If canoes are discontinued, calculate the net income lost or gained. Keep the department Eliminate the department Sales Expenses: Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $234,000 and would yield the following annual cash flows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Totals ci $ 14,000 110,000 170,000 $ 294,000 C2 $ 98,000 98,000 98,000 $ 294,000 C3 $182,000 62,000 50,000 $ 294,000 (1) Assume that the company requires a 10% return from its investments. Using net present value, determine which projects, if any, should be acquired. (Negative net present values should be indicated with a minus sign. Round your answers to the nearest whole dollar.) Project C1 Initial Investment Chart Values are Based on: Year Cash Inflow PV Factor Present Value 1 2 = 3