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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 $2,755,000 investment
Required information [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,755,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: Sales Variable expenses $2,875,000 1,124,000 Contribution margin 1,751,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation $ 721,000 551,000 Total fixed expenses 1,272,000 $479,000 Net operating income Click here to view Exhibit 148-1 and Exhibit 14B-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 value
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