Required information [The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,800,000 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: $2,845,000 1.109.000 1,736.000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other Fixed out-of-pocket costs Depreciation Total fixed expennen Het operating income $799.000 560.000 1,359.000 $ 377,000 Click here to view Exhibit 148.1 and Exhibit 148.2, to determine the appropriate discount factor(s) using table. 12. If the equipment had a selvage value of $300.000 at the end of five years, would you expect the project's simple rate of return to be higher, lower, or the same? Higher Lower Same