Required information (The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,955,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 16%. The project would provide net operating income in each of five years as follows: $ 2,871,000 1,018, 000 1,853,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 753,000 591,000 1,344,000 509,000 $ Click here to view Exhibit 13B-1 and Exhibit 13B-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 U Advertising, salaries, and other fixed out-of-pocket costs expenses Depreciation expense 2. What are the project's annual net cash inflows? Answer is complete and correct. Annual net cash inflow 1,100,000 3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.) Answer is complete and correct. Present value $ 3,601,400 4. What is the project's net present value? (Round discount factor(s) to 3 decimal places and final answer to the nearest whole dollar amount.) Answer is complete and correct. Net present value $ 646,400 5. What is the project profitability index for this project? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Project profitability index 1.22X