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Please answer all. Thanks so much in advance!:) Cardinal Company is considering a five-year project that would require a $2,915,000 investment in equipment with a
Please answer all. Thanks so much in advance!:)
Cardinal Company is considering a five-year project that would require a $2,915,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: Sales Variable expenses Contribution margin Fixed expenses: $2,746,000 1,126, 000 1,620,000 Advertising, salaries, and other fixed out-of-pocket costs Depreciation $ 615,000 583,000 Total fixed expenses Net operating income 1,198,000 $ 422,000 Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tableStep by Step Solution
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