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: Sales Variable expenses Contribution margin $2,871,000 1,018,000 1,853,000 Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs. Depreciation $ 753,000 591,000 Total fixed expenses 1,344,000 Net operating income $ 500,000 Click here to view Exhibit 128-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using table. 2. What are the project's annual net cash inflows? Annual net cash inflow 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: Sales Variable expenses Fixed expenses of-pocket costs $2,871,000 1,018,000 1,853,000 Contribution margin Advertising, salaries, and other fixed out- $ 753,000 591,000 Total fixed expenses Net operating income 1,344,000 $509,000 Depreciation Click here to view Exhibit 12B-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using table.. 3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.) Present value 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: Sales Veriable expenses $2,871,000 Contribution margin 1,018,000 1,653,000 Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs $ 755,000 Depreciation 591,000 Total fixed expenses Net operating income 1,344,000 $509,000 Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using table. 4. What is the project's net present value? (Round final answer to the nearest whole dollar amount.) Nat present value 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: Sales Variable expenses $2,871,000 Contribution margin 1,018,000 1,853,000 FLand expenses Advertising, salaries, and other fixed out- of-pocket costs $753,000 Depreciation 591,000 Total fixed expenses Net operating income 1,344,000 $500,000 Click here to view Exhibit 128-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using table. 5. What is the profitability index for this project? (Round your answer to 2 decimal places.) Poubtability indes 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: Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out- of pocket costs Depreciation Total fixed expenses Net operating income $2,871,000 1,018,000 1,853,000 $753,000 591,000 1,344,000 1 $ 500,000 Click here to view Exhibit 128-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using table. 6. What is the project's internal rate of return? Pcts el rate of return 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: Sales Variable expenses Contribution margin $2,871,000 1,018,000 1,853,000 Fixed expenses: Advertising, salaries, and other fixed out- of pocket costs Depreciation $753,000 591,000 Total fixed expenses 1,344,000 Net operating income $ 509,000 Click here to view Exhibit 12B-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using table. 7. What is the project's payback period? (Round your answer to 2 decimal places.) Projects payback penod years 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: Sales Variable expenses Contribution margin $2,871,000 1,018,000 1,853,000 Fixed expenses: Advertising, salaries, and other fixed out- of pocket costs Depreciation $753,000 591,008 Total fixed expenses 1,344,000 Net operating income $ 500,000 Click here to view Exhibit 128-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using table. 8 What is the project's simple rate of return for each of the five years? (Round your answer to 2 decimal places.) Septe rute of return Saved 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: Sales Variable expenses Contribution margin $2,871,000 1,018,000 1,853,000 Fixed expenses: Advertising, salaries, and other fixed out- of pocket costs Depreciation $ 753,000 591,000 Total fixed expenses Net operating income - 1,344,000 $500,000 Click here to view Exhibit 12B-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using table. 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 45%. 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.) Net present value 5 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: Sales Variable expenses Contribution margin Fixed expenses: $2,871,000 1,018,000 1,853,000 Advertising, salaries, and other fixed out- of pocket costs Depreciation $ 753,000 591,000 Total fixed expenses 1,344,000 Net operating incone $ 509,000 Click here to view Exhibit 12B-1 and Exhibit 128-2. 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 45%. What was the project's actual payback period? (Round your answer to 2 decimal places.) Payback penod years 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: Sales $2,871,000 1,018,000 1,853,000 Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out- of pocket costs Depreciation $753,000 591,000 Total fixed expenses Net operating income 1,344,000 $ 509,000 Click here to view Exhibit 128-1 and Exhibit 12B-2. to determine the appropriate discount factor(s) using table. 15. 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 45%. What was the project's actual simple rate of return? (Round your answer to 2 decimal places.) Simple rate of return EXHIBIT 128-1 Present Value of $1;1(1+r)n Periods 4%% 596 696 796 11% 0.962 0.952 0.943 2 0.925 0.907 0.890 0935 0.873 3 0.389 0.864 0.540 0.516 4 0.855 0823 0.792 0.763 5 0822 0.754 0.747 0.713 0.651 0.650 6 0.790 0.746 0.705 0.666 0.630 0.596 7 0.760 0.711 0.665 0.623 0.583 0.547 8 9 10 11 12 14 15 16 0.534 0.458 17 IN 19 0475 20 0.456 0.377 21 0.439 0.359 0.294 0.242 0.199 22 0422 0.342 0278 0.226 0.184 23 0406 0.326 0.262 0.211 6170 0.138 0.112 0.091 0.074 0.060 24 0.158 0126 0.102 25 26 27 0347 28 29 30 40 0.067 0046 8% 996 10% 1296 13% 14% 15% 16% 17% 189 1996 20% 21% 2296 23% 24% 25% 0.926 0917 0.909 0.901 0.893 0885 0.877 0.870 0.862 0.855 0.347 0.840 0.833 0.826 0.820 0.813 0.306 0.500 0.857 0.842 0.826 0812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.685 0.672 0.661 0.650 0.640 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0658 0641 0.634 0.609 0.593 0379 0.564 0.551 0.537 0.5240512 0.735 0.70% 0.653 0.659 0.636 0.613 0.592 0572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0410 0.621 0.593 0.567 0.543 0.319 0.497 0.476 0.456 0437 0419 0.402 0.356 0.370 0.355 0.341 0.328 0.564 0.535 | 0.507 0480 0.456 0432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.259 0.275 0262 0.513 0.482 0.452 0425 0.400 0.376 0.354 0.333 0.314 0296 0279 0.263 0249 0.235 0222 0210 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.255 0.266 0.249 0.233 0.218 0.204 0.191 0.703 0.645 0.592 0.544 0.500 | 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.676 0.614 0.558 0.508 0.463 0422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0208 0.191 0176 0.167 0.149 0.137 0.126 0.650 0.585 0.527 0475 0.429 0.388 0.350 0317 0.287 0.261 0.237 0.215 0.195 0.176 0.162 0.145 0.135 0.123 0.112 0.103 0.004 0.016 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.157 0.165 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 13 0.601 0330 0469 0415 0.368 0.326 0290 0258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.055 0.075 0.069 0.062 0.055 0.049 0.044 0.555 0.481 0.417 0.362 0.315 0.275 0.219 0.209 0183 0.160 0.140 0.125 0.108 0.095 0.084 0.074 0.065 0057 0.051 0.045 0.040 0.035 0394 0.339 0.292 0.252 0218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 0.513 0.436 0371 0050 0.198 0317 0270 0.231 0.170 0.146 0.125 0.108 0.093 0.069 0.060 0.052 0.045 0039 0.034 0030 0.026 0.023 0.350 0.296 0250 0212 0.180 0.494 0.032 0.153 0.130 0111 0.095 0.081 0.416 0.069 0.059 0.051 0.044 0.035 0034 0.025 0018 0.021 0.020 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.095 0.083 0.070 | 0.060 | 0.051 0.043 0.037 0.031 0.027 0.023 0.017 0.014 0.178 0.149 0.124 0.104 0.087 0.051 0.073 0043 0312 0.258 0.215 0.037 0.031 0.061 0.026 0.022 0.019 0.016 0.014 0012 0015 0.164 0.135 0.037 0.112 0.093 0.077 0.064 0.053 0.044 0.013 0.031 0.026 | 0.022 0.018 0.032 0.026 0.022 0.018 0.015 0150 0.123 0.101 0.083 0.068 0.056 0.046 0.035 0.013 0.011 0.009 0.012 0.010 0.009 0.007 0.006 0.040 0.049 0.033 0.027 0.022 0.018 0.015 0.035 0.023 0.019 0.015 0.013 0.010 0.008 0.028 0.082 0.066 0.053 0.390 0310 0247 0.197 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.074 0.059 0.047 0.375 0.295 0.233 0.184 0146 0116 0.092 0.005 0.007 0.006 0.021 0.017 0.014 0.011 0.009 0.053 0.042 0.033 0.026 0.361 0.135 0.106 0220 0.172 0.201 0.054 0.066 0.029 0.02) 0.018 0.014 0.005 0.007 0.006 0.037 0.09% 0.004 0.003 0.002 0.076 0268 0.207 0.161 0.060 0.047 0.125 0.004 0.005 0.054 0.003 0.002 0.002 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.006 0.090 0.255 0.196 0.150 0.116 0.333 0.069 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 0.321 0.243 0.185 0.141 0.063 0.048 0.037 0.029 0.022 0.017 0.014 0.011 0.107 0.082 0015 0.012 0.009 0.000 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0.099 0.305 0231 0.174 0.131 0.075 0.057 0.044 0.033 0.026 0.005 0.004 0.003 0.000 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.032 0.022 0.015 0.011 0.008 0.208 0.142 0093 0.179 0168 0.144 0.134 0.116 0.107 0.011 0.009 0.007 0.043 0.007 0.006 0.005 0.038 0.005 0.004 0.004 0.003 0.011 0.009 EXHIBIT 128-2 Present Value of an Annuity of 51 in Arrears 1/1-(1/(1+ral) 3.799 3.682 | 3.571 6% 7% 896 916 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 249 25% 0.943 0.935 0926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 9.847 0.840 0.833 0.826 0.820 0.813 0.306 0.800 1886 1.859 1.833 1.808 1.283 1.759 1.736 1713 1690 1.668 1.647 1.626) 1.605 1.585 1566 1.547 1.528 1.509 1.492 1474 1457 1440 2.773 2.723 2.673 2624 2577 2.531 2.487 2444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2,074 2.042 2.011 1.981 1952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2362 4452 4.329 4212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 5.242 5.076 4917 4.767 4.623 4.486) 4.355 4.231 4111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3:167 3,092 3.020 2.951 6.002 5.786 5582 5.389 5.206 5.033 4.868 4.712 4.564 4423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3242 3.161 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3:421 3329 6.515 6.247 5,995 5.759 5.537 5.328 5.132 4946 4.772 4.607 4.451 4.303 4.163 4,031 3.905 3.786 3.673 3.566 3.463 6.710 6418 6145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 7.139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 6814 6.492 6.194 5.918 5660 5.421 5.197 4988 4.793 4.611 4,439 4.275 4.127 3.985 3.551 3.725 7.103 6.750 6.424 | 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3912 3,760 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4,489 4.315 4.153 4001 3.859 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.159 4.033 3.887 8.544 8.022 7.549 7.120 6.729 6.375 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3910 8.756 8.201 7.702 7.250 6.540 6.467 6.128 5.815 5.534 5.273 5.033 4.812 4.608 4.419 4.243 4.080 3.928 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4,635 4.442 4.263 4.097 3.942 13.590 12.462 11.470 10 594 9.818 9.129 8.514 7.963 7.469 7.025 6.623 6.259 5.929 5.628 5353 5.101 4,870 4.657 4.460 4.279 4.110 3.954 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 14-451 13.163 12.042 11.061 10.201 9442 8.772 8:176 7.645 7.170 6.743 6.359 6.011 5,696 5.410 5.149 4.909 4.690 4488 4.302 4.130 | 3.970 14.857 13489 12.303 11.272 10.371 9.580 8.883 8.266 7,718 7.230 6.792 6.399 6.044 5.723 | 5432 | 5.167 4.925 4.703 4.499 4311 4.137 3.976 15.247 13.799 12.550 11469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6.434 6.073 5.746 5.451 5.182 4937 4.713 4.507 4.318) 4.143 3.981 15.622 14.094 12.283 11.654 10.675 9.823 9.077 7.843 7.330 6.873 6.464 6097 5.766 5.467 5.195 4.948 4.721 4514 4.323 4.147 3.985 15.983 14.375 13.003 11.826 10.810 9.929 9.161 7.896 7372 6.906 6.491 6.118 5.783 5.480 | 5.206 4.956 4.728 4.520 4.328 4,151 3.988 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 7.984 7441 6.961 6.534 6.152 5810 5.502 5.223 4.970 | 4.739 4.528 4.335 4.157 3.992 8.022 7.470 6953 6.551 6.166 5.820 5.510 5.229 4.975 4.743 4.531 4.337 4.159 3.994 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5:235 4.979 4,746 4.534 4.339 4.160 3.995 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4166 3.999 Periods 4% 5% 0962 0.952 2 3 4 5 6 7 8 9 7.435 7.108 6.802 10 8111 7.722 7.360 7.024 11 8.760 8.306 7.887 7.499 12 13 14 10.563 9.899 9.295 8.745 9.385 8.86) 8.384 7.943 7.536 7.161 9.956 9.394 8.853 8.158 7.904 7.487 8.244 | 7,786 15 11.11 10.380 9.712 9.108 8.559 8.061 36 11.652 10.838 10.106 9,447 8.851 8.313 17 12.166 11 274 10.477 9.763 9.122 18 12.659 11.690 10.828 10.059 9.372 19 20 21 22 23 24 25 8.422 26 27 8.488 8.548 28 29 30 40 19.293 17.159 15.046 13.332 11.925 10.757 9.779 16.663 14.898 15.406 12.137 11.051 10.116 9.307 16.984 15.141 13.591 12.278 11.158 10.198 9370 8.650 17.292 15.372 13.765 12.409 11.258 10.274 9.427 5.694 8.951 8.602