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9. If the companys discount rate of 16% instead of 14%, would you expect the projects net present value to be higher than, lower than, or the same as your answer to requirement 4? No computations are necessary.

10. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the projects period to be higher than, lower than, or the same as your answer to requirement 7? No computations needed.

11. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the projects net present value to be higher than, lower than, or the same as your answer to requirement 3? No computations are necessary.

12. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the projects simple rate of return to be higher than, lower than, or the same as your answer to requirement 8? No computations are necessary.

13. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the projects actual net present value?

14. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the projects actual payback period?

15. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the projects actual simple rate of return?

Cardinal Company is considering a five-year project that would require a $2,975,000 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: $2,735,000 1,000,000 1,735,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed $735,000 595,000 out-of-pocket costs Depreciation 1,330,000 405,000 Total fixed expenses Net operating income Cardinal Company is considering a five-year project that would require a $2,975,000 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: $2,735,000 1,000,000 1,735,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed $735,000 595,000 out-of-pocket costs Depreciation 1,330,000 405,000 Total fixed expenses Net operating income