The following information applies to the questions displayed below.] Cardinal Company is considering a five-year project that would require a $2,855,000 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: $ 2,867,000 1,125,000 1,742,800 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 706,000 571,000 1,277,000 465,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. Required: 1. Which item(s) in the income statement shown above will not affect cash flows? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Sales ? Variable expenses Advertising, salaries, and other fixed out-of-pocket costs expenses ? Depreciation expense 2. What are the project's annual net cash inflows? Annual net cash inflow 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 7. What is the project's payback period? (Round your answer to 2 decimal places.) Project's payback period years 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 return % 15. 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 simple rate of return? (Round your answer to 2 decimal places.) Simple rate of return : %