Required information [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,890,000 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: $2,739,000 1,100,000 1,639,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $641,000 578,000 1,219,000 $ 420,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. Required: 1. Which item(s) in the income statement shown above will not affect cash flows? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Sales Variable expenses ? Advertising, salaries, and other fixed out-of-pocket costs expenses ? Depreciation expense 3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.) X Answer is complete but not entirely correct. Present value $ 3,598,788 X 6. What is the project's internal rate of return? X Answer is complete but not entirely correct. Project's internal rate of return 20 % 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 50%. What was the project's actual net present value? (Negative amount should be indicated by a minus sign. Round intermediate calculations and final answer to the nearest whole dollar amount.) X Answer is complete but not entirely correct. Net present value $ 150,500