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The answer of NPV = - $205,560 or - $205,559.95 is incorrect. Please show work to find correct answer! Check my work Required information [The
The answer of NPV = - $205,560 or - $205,559.95 is incorrect. Please show work to find correct answer!
Check my work Required information [The following information applies to the questions displayed below.) Cardinal Company is considering a five-year project that would require a $2,500,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 12%. The project would provide net operating income in each of five years as follows: $ 2,853,000 1,200,000 1,653,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 790,000 500,000 1,290,000 363,000 $ Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table. 13. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 50%. 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.) Net present value $ (205,560)Step by Step Solution
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