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Thank you :))) 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
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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 project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows: $2,735,000 1,000,000 1,735,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 735,000 595,000 1,330,000 $ 405,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table. Foundational 13-3 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 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.) Net present value Foundational 13-5 5. 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 Foundational 13-7 7. What is the project's payback period? (Round your answer to 2 decimal places.) Project's payback period years Foundational 13-8 8. What is the project's simple rate of return for each of the five years? (Round your answer to 2 decimal places.) Simple rate of returnStep by Step Solution
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