Required information The Foundational 15 (LO12-1, LO12-2, LO12-3, 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 $2,975,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: D Sales $ 2,735,000 Variable expenses 1,000,000 Contribution margin 1,735,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 735,000 Depreciation 595,000 Total fixed expenses 1,330,000 Net operating income 405,000 $ Click here to view Exhibit 128.1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. 2. What are the project's annual net cash inflows? Annual net cash inflow 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 rate of return? (Round your answer to 2 decimal places.) Simple rate of return % 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? (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate calculations and final answer to the nearest whole dollar amount.) Nel present value 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 automatically graded as incorrect.) Sales Variable expenses Advertising, salaries, and other fixed out-of-pocket costs expenses Depreciation expense