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please help! thank you so much Required information (The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that
please help! thank you so much
Required information (The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,855,000 Investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: $2,867,000 1,125,000 1,742,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket coats Depreciation Total fixed expenses Net operating income 5 706,000 571,000 1,277,000 $ 465,000 Click here to view Exhibit 148-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table, 2. What are the project's annual net cash inflows? Annual net cash inflow Required information {The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,855,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating Income in each of five years as follows: $2,867,000 1,125,000 1,742,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket coats Depreciation Total fixed expenses Net operating income $ 706,000 571,000 1,272,000 $ 465,000 Click here to view Exhibit 148-1 and Exhibit 14B-2. to determine the appropriate discount foctor(s) using table. 5. What is the profitability index for this project? (Round your answer to 2 decimal places.) Profitability Index Step by Step Solution
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