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please help 10 Help Save & Exit Submit Cardinal Company is considering a project that would require a $2,750,000 investment in equipment with a useful
please help 10
Help Save & Exit Submit Cardinal Company is considering a project that would require a $2,750,000 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 company's discount rate is 18%. The project would provide net operating income each year as follows: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $2,849,000 1, 122,000 1,727,000 $ 752,000 470,000 1, 222,000 $ 505,000 Click here to view Exhibit 10-1 and Exhibit 10-2. to determine the appropriate discount factor(s) using tables. Required: What is the project's net present value? (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.) Net present value Hoor 15 NextStep by Step Solution
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