[The following information applies to the questions displayed below) Cardinal Company is considering a five-year project that would require a $3,025,000 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: $2,737,000 1.001,000 1,736,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other out of pocket costs Depreciation Total fixed expenses Net operating income 5610,000 605,000 1.215.000 S521,000 (Hint Use Microsoft Excel to calculate the discount factor(s)) 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 mork 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 o question mark will be outomatically graded os incorrect) Soles 2 Vonable expenses Advertising Salaries, and other foed out of pocket cost expenses 2 Depreciation expense 8 Prev 10 of 10 Next Saved Required information (The following information applies to the questions displayed below) Cardinal Company is considering a five-year project that would require a $3,025,000 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: $2,737,000 1.001.000 1,736,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salaries, and other out-of- pocket costs Depreciation Total fixed expenses Net operating income $610,000 605,000 1,215,000 $ 521,000 (Hint Use Microsoft Excel to calculate the discount factor(s)) 2-o. What are the project's annual net cash inflows? Annual net cash inflow 2.b. What is the present value of the project's annual net cash inflows? (Round discount foctor to 5 decimal places) Present value Required information [The following information applies to the questions displayed below) Cardinal Company is considering a five-year project that would require a $3,025,000 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: $2,737,000 1,001,000 1,736,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other out-of- pocket costs Depreciation Total fixed expenses Net operating income 5610,000 605,000 1.215.000 $ 521,000 (Hint Use Microsoft Excel to calculate the discount factor(s). 3. What is the project's net present value? (Round discount foctor(s) to 3 decimal places and final answer to the nearest whole dollar amount.) Nat present value Required information [The following information applies to the questions displayed below) Cardinal Company is considering a five-year project that would require a $3,025,000 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 $2,737,000 1.001.000 1,735,000 Sales Variable expenses Contribution margin Fixed expenses Advertising, salories, and other out of pocket costs Depreciation Total fixed expenses Net operating Income $610,000 605,000 1,215,000 5 $21.000 (Hint Use Microsoft Excel to calculate the discount factors) 8. If the company's discount rate was 18% instead of 15% would you expect the project's net present value to be higher, lower or the Same Higher Lower Same 1 Required information (The following information applies to the questions displayed below) Cardinal Company is considering a five-year project that would require a $3,025,000 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: $2,737.000 1.001.000 1,736,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other out of pocket costs Depreciation Total fixed expenses Net operating income 5610,000 605.000 1,215,000 5521,000 (Hint Use Microsoft Excel to calculate the discount factor(s)) 9. Ir the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's payback period to be higher lower, or the same? Higher Lower Same Required information The following information applies to the questions displayed below) Cardinal Company is considering a five-year project that would require a $3,025,000 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 $2,737,000 1,001,000 1,736,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other out of pocket costs Depreciation Total fixed expenses Net operating Income 5610,000 605,000 1.215.000 $ 521,000 (Hint Use Microsoft Excel to calculate the discount factor(s)) 10. If the equipment had a salvage value of $300,000 at the end of five years, would you expect the project's net present value to be higher, lower, or the same? Higher Lower Same