Required information The Foundational 15 (Algo) [LO12-1, LO12-2, LO12-3, LO12-5, LO12-6] [The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,850,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 18%. The project would provide net operating income in each of five years as follows: Click here to view Exhibit 128-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using table Foundational 12-1 (Algo) Required: 1. Which item(s) in the income statement shown above will not affect cash flows? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be outomatically graded as incorrect.) Sales Variable expenses Advertising solaries, and other fored out-of-pocket costs expenses Depieciation expense 2. What are the project's annual net cash inflows? 3. What is the present value of the project's annual net cash inflows? (Round your final onswer to the nearest whole dollar omount.) 4. What is the project's net present value? (Round final answer to the nearest whole dollar amount.) 5. What is the profitability index for this project? (Round your answer to 2 decimal places.) 6. What is the project's internal rate of return? 7. What is the project's payback period? (Round your answer to 2 decimal places. 8. What is the project's simple rate of return for each of the five years? (Round your answer to 2 decimal places.) 9. If the company's discount rate was 20% instead of 18%, would you expect the project's net present value to be higher, lower. or the same? Higher Lower Same 10. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's payback period to be higher, lower, or the same? Higher Lower Same 11. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's net present value to be higher, lower, or the same? Higher Lower Same 12. If the equipment had a salvage 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 13. 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? (Negotive amount should be indicated by a minus sign. Round intermediate calculations and final answer to the neorest whole dollor amount.) 14. 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 payback period? (Round your answer to 2 decimal places.) 15. 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 simple fate of return? (Round your answer to 2 decimal places.)