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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 $3,025,000 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 $3,025,000 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: $2,737,000 001 , 000 1,736,000 Advertising, salaries, and other fixed out-of-pocket costs Depreciation 610,000 605.000 609r001,215,000 Total fixed expenses Net operating income $ 521,000 Exhibit 138.1 and Exhibit,138.2 to determine the 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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