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Saved 2 Cardinal Company is considering a project that would require a $2,810,000 investment in equipment with a useful life of five years. At the
Saved 2 Cardinal Company is considering a project that would require a $2,810,000 investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $500,000. The company's discount rate is 16%. The project would provide net operating income each year as follows: $2,847,000 1,121,000 1,726,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income 3:07:57 $ 782,000 462,000 1,244,000 $ 482,000 Required: What are the project's annual net cash inflows? Annual net cash inflow
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