Return to question Required information [The following information applies to the questions displayed below.) Part 6 of 15 Cardinal Company is considering a five-year project that would require a $2,750,000 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: 0.66 points $2,849,000 1,122,000 1,727,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 752,000 550,000 1,302,000 $ 425,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table. 6. What is the project's internal rate of return? (Round your answer to nearest whole percent.) Answer is complete but not entirely correct. Project's internal rate of return 1 % Required information The following information applies to the questions displayed below.] Part 7 of 15 Cardinal Company is considering a five-year project that would require a $2,750,000 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: 0.66 points $2,849,000 1, 122,000 1,727,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 752,000 550,000 1,302,000 $ 425,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table. 7. What is the project's payback period? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Project's payback period 1.11 years Return to question Required information [The following information applies to the questions displayed below.) Part 8 of 15 Cardinal Company is considering a five-year project that would require a $2,750,000 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: 0.66 points $2,849,000 1, 122,000 1,727,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 752,000 550,000 1, 302,000 $ 425,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table. 8. What is the project's simple rate of return for each of the five years? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Simple rate of return 0.15 %
