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please answer all 4 questions please, will always upvote :) Cardinal Company is considering a five-year project that would require a $2,812,000 investment in equipment
please answer all 4 questions please, will always upvote :)
Cardinal Company is considering a five-year project that would require a $2,812,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 16%. The project would provide net operating Income in each of five years as follows: $ 2,855,000 1,010,000 1,845,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out. of-pocket costs Depreciation Total fixed expenses Net operating income $ 798,000 562,400 1,360,400 $ 484,600 Click here to view Exhibit21 and Exhibit 128-2. 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 4. What is the project's net present value? (Round final answer to the nearest whole dollar amount.) Nel present value 6. What is the project's internal rate of return? Project's internal rate of return % 7. What is the project's payback period? (Round your answer to 2 decimal places.) Project's payback period years Step by Step Solution
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