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Required information [ The following information applies to the questions displayed below. ] Cardinal Company is considering a five - year project requiring a $

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Cardinal Company is considering a five-year project requiring a $2,945,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating income in each of five years as follows:
\table[[Sales,$2,873,000,],[Variable expenses,1,019,000,],[Contribution margin,1,854,000,],[Fixed expenses:,,],[, Advertising, salaries, and other,,],[, fixed out-of-pocket costs,$754,000,],[Depreciation,589,000,1,343,000
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