Required information The Foundational 15 (L012-1, L012-2, L012-3, L012-5, L012-6) The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,870,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: $2,861,000 1,101,000 1,760,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket conta Depreciation Total fixed expenses Net operating income $705,000 574,000 1,279,000 $ 481,000 Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table, Foundational 12-6 6. What is the project's internal rate of return? (Round your answer to nearest whole percent.) % Project's internal rate of retum Required information The Foundational 15 (L012-1, 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 $2,870,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating Income in each of five years as follows: $2,861,000 1.101.000 1,760,000 Sales Variable expenses Contribution margin Tixed expenses Advertising, salaries, and other fixed out-of-pocket conta Depreciation Total fixed expenses Net operating income 5705.000 574.000 1,279,000 5 481,000 Click here to view Exhibit 128.1 and Exhibit 128-2. to determine the appropriate discount factor(s) using table. Foundational 12-7 7. What is the project's payback period? (Round your answer to 2 decimal places.) Project's payback period years O Required information The Foundational 15 (L012-1, L012-2, L012-3, L012-5, L012-6) [The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,870,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: $2,861,000 1,101,000 1,760.000 Sales Variable expenses Contribution margin Fixed expenses Advertisin salaries, and other cixed out-of-pocket conte Depreciation Total fixed expenses Net operating income $ 705,000 574,000 1,279,000 401,000 Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using table. Foundational 12-8 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 return The Foundational 15 [L012-1, L012-2, L012-3, L012-5, L012-6) The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,870,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating Income in each of five years as follows: Bolsa Variables Contribution $2,861,000 1,101,000 1.760,000 Advertising. salaries, and other fixed out-of-pocket cout Depreciation Total Fidexpense Het operating in 0705,000 574,000 1279.000 481.000 Click here to view Exibit 128.1 and Exit 128-2. to determine the appropriate discount factor(s) using table, Foundational 12-9 9. If the company's discount rate was 14% instead of 12%, would you expect the project's net present value to be higher, lower or the same? Higher Lower Same The Foundational 15 (L012-1, L012-2, L012-3, L012-5, L012-6) [The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,870,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: $2,861,000 1,101,000 1,760,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other fixed out-of-pocket costa Depreciation Total fixed expenses Net operating income $ 705,000 574,000 1,272.000 $ 481,000 Click here to view Exhibit 128-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using table Foundational 12-10 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 O Same