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Please provide the steps on how you find the answer. Thanks in advance Cardinal Company is considering a project that would require a $2,865,000 Investment
Please provide the steps on how you find the answer. Thanks in advance
Cardinal Company is considering a project that would require a $2,865,000 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 $300,000 The company's discount rate is 12%. The project would provide net operating Income each year as follows Sales Vanable expenses $ 2,869,000 1,126,000 1,743,000 Contribution margin Fxed expenses Advertising, salaries, and other flixed out-of-pocket costs Depreclation $709,000 513,000 Total fixed expenses 1,222,000 Net operating Income s 521,000 value 6.00 points Required Required: 1. Which item(s) in the income statement shown above will not affect cash flows? (You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.) Sales vanable expenses Advertising, salaries and other fixed out-of-pocket costs expenses Depreciation expense Step by Step Solution
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