Required information [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,870,000 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: Sales Variable expenses Contribution margin $ 2,861,000 1,101,000 1,760,000 Fixed expenses: Advertising, salaries, and other fixed out- of-pocket costs $ 705,000 Depreciation 574,000 Total fixed expenses Net operating income 1,279,000 $ 481,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.