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Please help with the answers ASAP . Need to explain in an hour. Thanks. Cardinal Company is considering a project that would require a $2,765,000
Please help with the answers ASAP . Need to explain in an hour. Thanks.
Cardinal Company is considering a project that would require a $2,765,000 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 $200,000. The comparty's discount rate is 12%. The project would provide net operating income each year as follows: $2,861,800 1,101,800 1,760,000 Sales www Variable expenses Contribution margin Fixed expenses: Advertising salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income 795,000 513,000 1, 218,000 $ 542,099 Required: What are the project's annual net cash inflows? Annual net cash inllowStep by Step Solution
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