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Required information The Foundational 15 (LO13-1, LO13-2, LO13-3, LO13-5, LO13-6) The following information applies to the questions displayed below. Cardinal Company is considering a five-year
Required information The Foundational 15 (LO13-1, LO13-2, LO13-3, LO13-5, LO13-6) The following information applies to the questions displayed below. Cardinal Company is considering a five-year project that would require a $2,812,000 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: Sales Variable expenses contribution margin Fixed expenses: $2,855, 000 1,010,000 1,845,000 Advertising, salaries, and other fixed out-of-pocket costs Depreciation $ 798,000 562,400 Total fixed expenses Net operating income 1,360,400 $ 484,600 Click here to view Exhibit 138-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table. Foundational 13-4 4. What is the project's net present value? (Round discount factor(s) to 3 decimal places and final answer to the nearest whole dollar amount.) et present value Foundational 13-5 S. What is the project profitability index for this project? (Round your answer to 2 decimal places.) Project profitability index Foundational 13-6 6. What is the project's internal rate of return? (Round your answer to nearest whole percent.) Project's internal rate of return
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