Thalassines kataskeves, S.A. of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows: Thalassine kataskeves, S.A. Income statement-Bilge Pump For the Quarter Ended March 31 Sales $ 490,000 Variable expenses Variable manufacturing expenses $ 140,000 Sales como 48,000 Shipping 120.000 Total variable expenses 200,000 Contribution margin 290.000 Fixed expenses Advertising (for the bilge pump product line) 22.000 Depreciation of equipment (no temale value) 100,000 General factory overhead 39,000 Salary of product-line manager 115,000 Insurance on inventories 7.000 Purchasing department 46,000+ Total fixed expenses 329,000 Net operating 1083 (99.000) Net operating loss $ 139,000) Common costs allocated on the basis of machine hours. Common costs allocated on the basis of sales dollars. Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company's total general factory overhead or total Purchasing Department expenses. Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line? Cardinal Company is considering a five-year project that would require a $2,955,000 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: $2,871,000 1.013,000 1,853,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costa Depreciation Total fixed expenses Net operating income $753,000 591,000 1,344,000 $ 509,000 Pissent Value of St. Periods 4% 59 6% 7% 8% 9 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0.917 0909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 0.889 0864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0564 0,551 0.537 0.524 0.512 4 0.855 0823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0.410 5 0.822 0784 0.747 0713 0681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 6 0.790 0.746 0.705 0666 0.630 0.596 0.564 0.535 0.507 0,480 0.456 0432 0.410 0.390 0.370 0,352 0.335 0.319 0.303 0.289 0.275 0.262 7 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 8 0.731 0,677 0.627 0.582 0.540 0.502 0.467 0434 0.404 0.376 0.351 0.327 0.305 0.285 0 266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 9 0.703 0645 0,592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 10 0.676 0.614 0.658 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0222 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 11 0.650 0.585 0.527 0.475 0.429 0388 0.350 0.17 0.287 0 261 0.237 0.215 0.195 0.17 0.162 0.148 0.135 0.123 0.112 0 103 0.094 0.086 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.25% 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 13 0.601 0.530 0.460 0.415 0.368 0.326 0.290 0.258 0.229 0 204 0.182 0163 0.145 0130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0055 14 0.577 0 505 0442 0388 0.340 0.299 0 263 0.232 0.205 0.181 0.160 0141 0.125 0.111 0.099 0.008 0.078 0.069 0.062 0055 0.049 0.044 15 0.555 0.481 0417 0.362 0.315 0.275 0.239 0.200 0.183 0.160 0 140 0.123 0.108 0.095 0.084 0.074 0.065 0,057 0.051 0.045 0.040 0.035 16 0.534 0458 0.394 0.339 0.292 0252 0218 0.108 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 17 0.513 0436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.003 0.080 0069 0.060 0,052 0.045 0.039 0.034 0030 0026 0023 TB 0.494 0.416 0.350 0.250 0.250 0.212 0.180 0.153 0.130 0.111 0005 0.081 0.000 0.050 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 19 0.475 0.396 0331 0.277 0.232 0.194 0 164 0.138 0.116 0.008 0.003 0.070 0.000 0.051 0.043 0.037 0031 0.027 0.023 0.020 0.017 0.014 20 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0087 0073 0.061 0.05 0.043 0.037 0031 0026 0022 0.019 0.016 0.014 0.012 21 0.439 0.359 0.294 0 242 0.199 0.164 0.135 0.112 0.003 0.077 0064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0,015 0,013 0.011 0.009 22 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0032 0.025 0.022 0018 0.015 0.013 0.011 0.009 0.007 23 0:406 0.326 0 262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 0.040 0040 0,033 0.027 0.022 0.018 0.015 0012 0.010 0,009 0.007 0.006 24 0.390 0.310 0.947 0.197 0158 0.126 0 107 0082 0.006 0.053 0.043 0035 0.028 0.023 0019 0,015 0.013 0010 0.008 0.007 0.006 0,005 25 0.375 0.295 0 233 0.184 0.146 0.116 0.092 0.074 0.059 0,042 0038 0.030 0024 0.020 0,016 0013 0.010 0.000 0.007 0.006 0.005 0.004 26 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0053 0.042 0033 0.026 0.021 0.017 0014 0011 0.009 0.007 0.006 0.005 0.004 0.003 27 0347 0.268 0.207 0.161 0.125 0098 0.076 0.060 0.047 0.037 0.029 0.023 0018 0.014 0.011 0.009 0.007 0.006 0.005 0,004 0.003 0002 28 0.333 0.255 0.196 0.150 0.116 0.090 0,069 0054 0042 0.033 0.026 0,020 0,016 0,012 0010 0.008 0.006 0.005 0004 0.003 0.002 0.002 29 0321 0.243 0.185 0.141 0.107 0.002 0.063 0.048 0.037 0 029 0,022 0.017 0014 0011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 30 0.308 0.231 0.174 0.131 0.099 0.075 0057 0044 0033 0,026 0.020 0,015 0,012 0009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 40 0.208 0.142 0097 0.067 0.046 0.032 0.022 0,015 0,011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 Present Value of an Annuity of 1 in Anvers: ?-11+ Periods 5% 6% 7 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2 1886 1859 1833 1808 1783 1759 1736 1713 1690 1668 1647 1626 1605 1.585 1.566 1.547 1.528 1509 1.492 1.474 1.457 1.440 3 2.775 2.723 2673 2.624 2577 2.531 2487 2.444 2.402 2361 2322 2283 2246 2210 2.174 2.140 2106 2074 2042 2.011 1.981 1952 4 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2914 2855 2.798 2.743 2.690 2639 2 589 2.540 2494 2.448 2 404 2.362 5 4.452 4.329 4212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3274 3.199 3.127 3.058 2991 2.926 2.864 2.803 2.745 2.689 6 5242 5.076 4.912 4.767 4.623 4.486 4.355 4 231 4.111 3.998 3889 3.784 3685 3.589 3.498 3.410 3326 3.245 3.167 3.092 3.020 2951 7 6.002 5.786 5582 5389 5.206 5.033 4868 4.712 4564 4423 4288 4.160 4039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 8 6.733 6.463 6210 5.971 5.747 5.535 5.335 5.146 4 968 4.799 4639 4487 4344 4 207 4078 3954 3.837 3.726 3619 3.518 3.421 3.329 9 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5328 5.132 4 946 4772 4.607 4.451 4 303 4 163 4031 3 905 3.786 3.673 3.566 3.463 10 8 111 7722 7360 7.024 6.710 6.418 6145 5.889 5650 5.426 5.216 5.019 4833 4,659 4.494 4339 4192 4.054 3.923 3.799 3.682 3.571 11 8.760 8.3067.887 7.499 7.139 6.805 6.495 6.207 5.938 5,687 5.453 5.234 5029 4836 4,656 4.486 4.327 4.177 4,035 3.902 3.776 3.656 12 9.3858863 8.384 7943 7536 7161 5.814 6.492 6.194 5.918 5.560 5.421 5.197 4988 4.793 46114.439 4278 4.127 3.985 3.851 3.725 13 9.986 9.294 8853 8.3587904 7487 7.103 6.750 6 424 6 122 5.842 5.583 5.342 5.118 4.910 4715 4533 4 362 4.203 4053 3.912 3.780 14 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6 628 6 302 6.002 5.724 5.468 5.229 5.008 4.802 4,611 4.432 4.265 4.108 3.962 3.824 15 11.118 10.380 9.712 9.108 8.559 8061 7606 7.191 6811 6,462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4 315 4.153 4001 3.859 16 11652 10.838 10.106 9447 8.851 8313 7.824 7.279 6.974 6,604 6 265 5.954 5.668 5.405 5.162 4938 4.730 4.536 4.357 4.189 4.033 3.887 12 12.166 11.274 10.477 9763 9.1228544 8022 7549 7 120 6.729 6 373 6 047 5.749 5.475 5.222 4.990 4775 4576 4.391 4.219 4059 3 910 18 12659 11690 10828 10.059 9.372 8756 8.201 7.702 7.250 6.840 6 467 6.128 5.818 5.534 5.273 5.033 48124608 4 419 4 243 4.080 3.928 19 13.134 12.085 11.158 10 336 9.604 8950 83657899 7 366 6.938 6550 6.198 5.877 5584 5.316 5070 4.843 4.635 4 442 4.263 4.097 3942 20 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7.469 7025 6623 6.259 5929 5628 5353 5.101 4.870 4,652 4460 4.279 4.110 3954 21 14.029 12.821 11.764 10836 10.017 9.292 8.649 8.075 7,5627 102 6.687 6.312 5973 5.665 5 384 5.127 4891 4675 4.476 4.292 4.121 3953 22 14.451 13.163 12.042 11 061 10.2019.442 8.772 2.176 7645 7.170 6.743 6.359 6011 5.696 5.410 5.149 4.909 4.690 4.488 4 302 4130 3.970 23 14857 13.489 12.303 11 272 10.371 9.580 8.883 8.266 7.718 7230 6.792 6 399 6044 5.722 5.432 5.167 4925 4.703 4.499 4311 4.137 3.976 24 15.247 13.799 12550 11469 10.529 9.707 8.985 8 348 7,784 7283 6835 6.434 6.073 5.746 5.451 5.182 4937 4.213 4507 4318 4 143 3981 25 15 622 14094 12783 1654 10 675 9.8239.077 8.422 7.843 7330 6.873 6 464 6097 5.766 5.467 5.195 4948 4721 4.514 4323 4.147 3.985 26 15983 14 375 13.003 11.826 10.810 9.929 9.161 8.488 7.896 7372 6.906 6.491 6.118 5.783 5.480 5.200 4 956 4.728 4520 4328 4.151 3988 27 16.330 14643 13.211 11.987 10 935 10.027 9.237 8.548 7943 7.409 6 935 6.514 6.136 5.798 5.492 5215 4.964 4734 4.524 4332 4.154 3.990 28 16.663 14898 13.406 12.137.11.051 10.116 9.307 8.5027984 7441 6 961 6,534 6.152 5810 5 502 5 223 4920 4.739 4528 4.315 4 157 3.992 29 16.984 15.141 13591 12278 11:158 10.1989 370 8.650 8.022 7470 6983 6551 6.166 5820 5.510 5.229 4975 4.743 4531 4.337 4.159 3.994 30 17.292 15 372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7 496.7003 6.566 6.177 582955125.235 4.979.4.746 4534 4.339 4.160 3995 40 19.793 17 159 15 046 13 332 11925 10.757 9.779, 8951 244 7634 7 105 6 642 5 233 58715.548 5 258 4997 4760 4544 4347 4.166 3.999 3. What is the present value of the project's annual net cash inflows? (Round your final answer to the nearest whole dollar amount.) Present value