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Required information The Foundational 1 5 ( Algo ) [ LO 1 2 - 1 , L 0 1 2 - 2 , L 0

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Required information
The Foundational 15(Algo)[LO12-1, L012-2, L012-3, L012-5, LO12-6]
[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:
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.
Foundational 12-6(Algo)
What is the proiect's internal rate of return?
[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:
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.
Foundational 12-13(Algo)
Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio,
which actually turned out to be 45%. What was the project's actual net present value? (Negative amount should be indicated by a
minus sign. Round intermediate calculations and final answer to the nearest whole dollar amount.)
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