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Required information [The following information applies to the questions displayed below] Cardinal Company is considering a five-year project that would require a $2,915,000 investment in
Required information [The following information applies to the questions displayed below] Cardinal Company is considering a five-year project that would require a $2,915,000 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 $ 781,000 583,000 $ 2,863,000 1,014,000 1,849,000 Total fixed expenses 1,364,000 Net operating income $ 485,000 Click here to view Exhibit 128-1 and Exhibit 128-2. 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 $2,915,000 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 $ 781,000 583,000 $ 2,863,000 1,014,000 1,849,000 Total fixed expenses Net operating income 1,364,000 $ 485,000 Click here to view Exhibit 128-1 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 $2.915,000 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 $ 2,863,000 1,014,000 1,849,000 $ 781,000 583,000 1,364,000 $485,000 Net operating income 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.) Net present valun Required information [The following Information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,915,000 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 $ 781,000 583,000 $ 2,863,000 1,014,000 1,849,000 Total fixed expenses 1,364,000 Net operating incone 5 485,000 Click here to view Exhibit 12B-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.) Profitability index Required information [The following information applies to the questions displayed below] Cardinal Company is considering a five-year project that would require a $2,915,000 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 $ 781,000 583,000 $ 2,863,000 1,014,000 1,849,000 Total fixed expenses Net operating incone 1,364,000 $ 485,000 Click here to view Exhibit 128-1 and Exhibit 120-2, to determine the appropriate discount factor(s) using table. 6. What is the project's internal rate of return? Project's internal rate of retum %
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