Question

Part4of 14 1.- 10 points Return to questio Required information Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other out-O'F-pocket costs $ Depreciation Total 'Fixed expenses Net operating income 799,999 559,999 [The following information applies to the questions displayed below] Cardinal Company is considering a fiveyear project that would require a $2,845,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: $2,869,999 1,125,999 1,743,999 1,273,999 $ 465,999 (Hint. Use Microsoft Excel to calculate the discount factor(s).) 4. What is the project profitability index for this project? (Round discount factor(s) to 3 decimal places and final answer to 2 decimal places.) 0 Answer is complete but not entirely correct