Problem two lgnore income taxes in this problem.) Tranter, Inc., is considering a project that would have a ten-year life and would require a $1,500,000 investment in equipment. At the end of ten years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows: Sales Variable expenses Contribution margin Fixed expenses: $2,000,000 1,100,000 900,000 Fixed out-of-pocket cash $500,000 expenses Depreciation 150,000 650,000 Net operating income $250,000 All of the above items, except for depreciation, represent cash flows. The company's required rate of return is 12%