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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 $2,810,000 investment
Required information [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,810,000 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 $2,847,000 1,121,000 1,726,000 Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $782,000 Depreciation 562,000 Total fixed expenses 1,344,000 $ 382,000 Net operating income Click here to view Exhibit 138-1 and Exhibit 138-2, to determine the appropriate discount factor(s) using table. 2. What are the project's annual net cash inflows? Annual net cash inflow
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