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Cardinal Company is considering a five$-$year project that would require a $$2,915,000$ investment in equipment with a useful life of five years and no salvage value. The companys discount rate is $16\%.$ The project would provide net operating income in each of five years as follows:

Sales $ $2,863,000$

Variable expenses $1,014,000$

Contribution margin $1,849,000$

Fixed expenses:

Advertising, salaries, and other fixed out$-$of$-$pocket costs $ $781,000$

Depreciation $583,000$

Total fixed expenses $1,364,000$

Net operating income $ $485,000$

Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using table.

Foundational $12-2($Algo$)$

$2.$ What are the projects annual net cash inflows?