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Please do all the questions Thank you all the requirements are provided !!!! there is nothing more to be added Foundational [LO11-1, LO11-2, LO11-3, LO11-4]
Please do all the questions
Thank you
all the requirements are provided !!!! there is nothing more to be added
Foundational [LO11-1, LO11-2, LO11-3, LO11-4] Cardinal Company is considering a project that would require a $2.812.000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. The companys discount rate is 16%. The project would provide net operating income each year as follows: Sales Variable expenses $2,855,000 1,010,000 1,845,000 Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation $798,000 482.400 Total fixed expenses 1,280,400 Net operating income $ 564,600 Foundational [LO11-1, LO11-2, LO11-3, LO11-4] Cardinal Company is considering a project that would require a $2.812.000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. The companys discount rate is 16%. The project would provide net operating income each year as follows: Sales Variable expenses $2,855,000 1,010,000 1,845,000 Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation $798,000 482.400 Total fixed expenses 1,280,400 Net operating income $ 564,600Step by Step Solution
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