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Somple rate of return Cardinal Company is considering a five-year project that would require a investment in equipment With a useful life Of five years
Somple rate of return
Cardinal Company is considering a five-year project that would require a investment in equipment With a useful life Of five years and no salvage value. The company' discount rate is 14%. The project would provide net operating income in each Of five years as follows: $ 135,000 405.000 sales Variable expenses Contrib_lton nmrqin Fixed expenses: Advertising, ion expenses Not operating ineomo and Other costs 595 000 735, 000 1 000 000 ooo Click here to View E.d1Lb[t-12Bz1 and to determine the appropriate discount factor(s) using table, Foundational 12-13 13. Assume a postaudit showed that au 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.)
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