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Required information The following information applies to the questions displayed below.] Part 14 of 15 Cardinal Company is considering a five-year project that would require
Required information The following information applies to the questions displayed below.] Part 14 of 15 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: 8 01:01:44 $ 2,739,000 1,100,000 1,639,000 eBook 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 Print 1,219,000 420,000 $ Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. 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 50%. What was the project's actual payback period? (Round your answer to 2 decimal places.) Payback period years
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