Required information (The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,915,000 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: $2,863,000 1,014,000 1,849,000 Sales Variable expenses Contribution margin Pixed expenses Advertising, salaries, and other fixed out-of-pocket conts Depreciation Total fixed expenses Net operating income $781,000 583,000 1,364,000 $ 485,000 Click here to view Exhibit 138.1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table. 3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.) Present value Required information The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,915,000 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: $2,863,000 1,014,000 1,849,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $781.000 583,000 1,364,000 $ 485,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table. 5. What is the project profitability index for this project? (Round your answer to 2 decimal places.) Project profitability index exhibit 138 2009 (1572-1045) * ezto-cf-media, meducation.com EXHIBIT 130-2 Present Value of an Annully of $1 in Arrears:11- 1 Periods 1 2 3 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 2.775 2.723 2.673 2624 2.577 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1.952 3.630 3.546 3.465 3387 3312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2 589 2540 2494 2.448 2.404 2362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 5242 5.076 4.917 4.767 4.623 4.486 4.355 4 231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3326 3.245 3.167 3.092 3.020 2.951 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4423 4288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 6.733 6.463 6210 5971 5747 5535 5 335 5 146 4.968 4.799 4639 4487 4344 4 207 4078 3.954 3.837 3.725 3619 3518 3.421 3.329 7.435 7108 6.802 6515 6247 5.995 5.759 5 537 5328 5.132 4946 4.772 4 607 4,451 4.303 4.163 4031 3.905 3.786 3.673 3.566 3.463 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5 938 5687 5.452 5.234 5.029 4836 4,656 4.486 4 327 4.177 4035 3.902 3.776 3656 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.725 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5842 5.583 5. 342 5.118 4.910 4,715 4.533 4.362 4 203 4053 3.912 3.780 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6 628 6.302 6002 5724 5.468 5229 5.008 4 802 4611 4.432 4.265 4.108 3.962 3.824 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6811 6.462 6.142 5 847 5 575 5 324 5.092 4.876 4.675 4.489 4315 4.153 4001 3.859 10 12 14 15 16 17 1B 19 20 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6974 6,604 6 265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4.033 3.887 12.166 11.274 10.477 9.763 9.122 8544 8022 7549 7.120 6.729 6.373 6047 5 749 5.475 5 222 4.990 4.775 4.576 4.391 4219 4059 3.910 12659 11.690 10 828 10.05993728.7568.201 7.702 7.250 6.840 6.467 6.128 5.18 5.534 5.273 5033 4.812 4.608 4.419 4243 40BO 3.928 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7800 7366 6 938 6550 6.108 5877 5584 5 316 5.070 4 843 4.635 4.442 4.263 4097 3.942 13.590 12.462 11.470 10.594 9818 9.129 8 514 7.963 7.460 7025 6623 6260 6929 5.628 5.353 5101 4.870 4.657 4.460 4.279 4.110 3.954 22 14.029 12.821 11.764 10 836 10 017 9.292 8.649 8,075 7.562 7.102 6.687 6312 5973 5665 5 384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 14.451 13.163 12.042 11.061 10. 201 9.442 8.772 8.176 7645 7170 6.743 659 6011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 14857 13.489 12 303 11 272 10.371 9580 883 266 77 72067926199 6044 522 5432 5 167 4925 4 703 4.499 4 311 4.137 3.976 15 247 13.799 12 550 11.459 10 529 9.707 8 985 8 348 7784 7283 6835 6434 6073 5746 5 451 5 182 4937 4.713 4507 4 318 4.143 3981 15.622 14.094 12.783 11.654 10675 9.823 9.077 8.422 7.843 7330 6873 6.4646097 5766 5467 5 195 4948 4.721 4514 4 323 4.147 3985 24 25 26 27 28 29 30 40 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7.372 6.906 6.491 611 5783 5.480 5.205 4 956 4.728 4.520 4320 4.151 3.988 16 330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7409 6 935 6514 6136 5.798 5.492 5 215 4.964 4.734 4.524 4.332 4.15.4 3.990 16.663 14.898 13.406 12.137 11051 10.116 9.307 R 602 7984 7441 6 961 65146 152 5810 5 502 5223 4.970 4.739 4 528 4 335 4,157 3.992 16.984 15.141 13.591 12 278 11.158 10.198 9.370 650 022 7470 6983 6551 166 5820 5510 5229 4.975 4.743 4.531 4.337 4.159 3.994 17.292 15 372 13.765 12 409 11.250 10.274 9.427 8604 3055 7 496 7003 65666.677 5829 551 5235 4979 4.746 4.534 4 339 4.160 3.995 10.703 17.159 15.046 13.332 11.925 10.757 9.779 8.951 B.244 7.634 7.105 6,642 6233 5.8715.543 5.250 1.997 4.760 4.544 4.347 4.166 3.999 EXHIBIT 138-1 West Periods 1 7 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23 24 25 0.962 0.952 0943 0935 0.926 0.017 0.09 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.347 0.840 0.33 0.826 0.20 0.313 0.06 0.800 2 0 925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0 650 0 540 0.889 0.864 0.340 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0,659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0.410 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 0.750 0.711 0.665 0.623 0.583 0 547 0.513 0482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0 279 0.263 0.249 0235 0.222 0210 0.731 0.677 0.627 0.582 0.540 0 502 0.467 0434 0404 0.376 0.351 0 327 0.305 0 285 0 266 0249 023) 0218 0204 0.191 0.179 0.168 9 0 .703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 10 0.676 0.614 0.558 0.500 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 11 0.650 0.505 0.527 0.475 0.420 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 0.625 0.557 0.497 0.444 0 397 0356 0.319 0.286 0.257 0231 0.20 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 13 0.601 0.530 0.469 0415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 14 0577 0.505 0.442 0.388 0340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 15 0.555 0.461 0417 0.362 0.315 0.275 0.239 0209 0.183 0.160 0.140 0.123 0.108 0.005 0.014 0.074 0.065 0057 0 051 0045 0.040 0.035 16 0.534 0.458 0.394 0.339 0.292 0.252 0218 0.18 0.163 0.141 0.123 0 107 0093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0032 0.028 17 0513 0.436 0.371 0.317 0.270 0231 0198 0170 0 146 0.125 0.108 0.093 0.00 0.00 0.060 0,052 0.045 0.030 0.034 0.030 0.026 0.023 18 0.494 0.416 0.350 0.206 0.250 0.212 0.180 0153 0.130 0.111 0.095 0.001 0.069 0.050 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 19 0.475 0.396 0.331 0.277 0.232 0.194 0 164 0138 0.116 0.098 0.083 0070 0,060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0014 200456 0.377 0312 0.258 0.215 0,178 0.149 0124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0016 0.014 0.012 21 0.439 0.359 0.294 0242 0.199 0164 0.135 0.112 0.093 0.077 0.054 0.053 0.044 0.037 0,031 0.026 0.022 0.018 0015 0.013 0.011 0.009 22 0.422 0.342 0.278 0226 0.184 0.150 0.123 0.101 0.003 0.058 0.056 0.046 0.08 0.032 0.026 0022 0.018 0015 0.013 0.011 0009 0.007 23 0.406 0.326 0.262 0.211 0110 0 0 112 0091 0.074 000 0049 0040 0033 0027 0.022 0.018 0,015 0,012 0010 0.009 0.007 0.006 24 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0082 0.066 0.053 0.043 0.035 0.025 0.023 0.019 0.015 0.013 0.010 0.008 0.007 0.006 0.005 25 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0059 0.047 0.038 0.030 0.024 0.020 0,016 0.013 0.010 0,009 0.007 0.006 0.005 0.004 260 361 0281 0.220 0.172 0.135 0.106 0004 0.006 0053 0.042 0.033 0026 0021 0012 0014 0011 0.000 0.00 0.00 0.00 0.004 0.003 27 0.347 026 0207 0.161 0.125 0.008 0076 OOO 0047 0037 0029 0023 0018 0014 0011 0009 0.007 0006 000S 0004 0.003 0.002 28 0333 0.255 0.16 0.150 0.116 0090 0.069 0.054 0.042 0.033 0.025 0.020 0.016 0012 0.010 0.00 0.000 0.005 0004 0.003 0.002 0.002 20 0321 0.24) 1 0.141 0 107 0002 003 004 0037 0.029 0.022 0.017 0.014 0.011 ODOS O 006 ODOS 0.004 0003 0.002 0.002 0.002 3 0.01 071 0.174 0.31 0099 0.075 0.087 0044 0033 0.025 0.020 0,015 0012 0.000 0.007 00050004 0.00 0.003 0.002 0.002 0.001 + 0.08 0.142 0097 0.06 0.046 0012 0.022 0.015 0011 0.00 0.00 0.004 0.003 0.002 0.001 000 000 0000 0.000 0.000 0.000 0.000