The Foundational $15($Algo$)[$LO$12-1,$ LO$12-2,$ LO$12-3,$ LO$12-5,$ LO$12-6]$

Skip to question

$[$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:

Sales $ $2,853,000$

Variable expenses $1,200,000$

Contribution margin $1,653,000$

Fixed expenses:

Advertising, salaries, and other fixed out$-$of$-$pocket costs $ $790,000$

Depreciation $500,000$

Total fixed expenses $1,290,000$

Net operating income $ $363,000$

$13.$ 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 intermediate calculations and final answer to the nearest whole dollar amount.$)$

$14.$ 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 payback period? $($Round your answer to $2$ decimal places.$)$

$15.$ 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.$)$