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! Required information The Foundational 15 (Algo) (LO14-1, LC14-2, LO14-3, LO14-5, LO14-6) [The following information applles to the questions displayed below.) Cardinal Company is considering

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! Required information The Foundational 15 (Algo) (LO14-1, LC14-2, LO14-3, LO14-5, LO14-6) [The following information applles 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 volue. The company's discount rate is 16%. The project would provide net operating income in each of five years as follows: 5 2,737,000 1.001,000 1,936.000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salarion, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income 9.610,000 605,000 1,215,000 $ 521,000 Click here to view Exhibit 148.1 and Exhibit 14B-2. to determine the appropriate discount foctor(s) using table. Foundational 14-3 (Algo) 3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.) Prosent value Foundational 14-4 (Algo) 4. What is the project's net present value? (Round final answer to the nearest whole dollar amount.) Net present value Foundational 14-5 (Algo) 5. What is the profitability index for this project? (Round your answer to 2 decimal places.) Profitability index Foundational 14-6 (Algo) 6. What is the project's internal rate of return? Project's internal rate of return % Foundational 14-7 (Algo) 7. What is the project's payback period? (Round your answer to 2 decimal places.) Project's payback period years Foundational 14-8 (Algo) 8. What is the project's simple rate of return for each of the five years? (Round your answer to 2 decimal places.) Simple rate of retum % Foundational 14-13 (Algo) 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 50%. 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.) Net present value Foundational 14-14 (Algo) 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 50%. What was the project's actual payback period? (Round your answer to 2 decimal places.) Payback period years Foundational 14-15 (Algo) 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 50% What was the project's actual simple rate of return? (Round your answer to 2 decimal places.) Simple rate of retum %

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